Construction has been suspended on the 110 million gallon a year ethanol plant in Reynolds, Ind. VeraSun Energy Corporation announced the suspension of building due to current market conditions, but say they expect to resume building next year.
"We believe it's important to be mindful of the current market conditions and manage our business accordingly," said Danny Herron, VeraSun Chief Financial Officer and Senior Vice President. "Given the abrupt change in market conditions that have seen ethanol prices drop nearly 50 cents per gallon in the last 60 days, it is prudent for us to adjust our current pace of expansion. Due to Reynold's early stage of development, we believe it is wise to suspend investment until the market provides an acceptable return."
Building will continue on VeraSun's other four ethanol facilities under construction in Hartley, Iowa, Welcome, Minn., Albion, Neb. and Bloomingburg, Ind.