GARNETT — The East Kansas Agri-Energy ethanol plant in Garnett will temporarily suspend production beginning Oct. 1st. The company said the prolonged drought cut the availability of corn and sharply increased the price of corn. At the same time, the demand for gasoline is down, resulting in surplus ethanol stocks. “We have studied the situation extensively and with the challenging economic conditions the board of directors has determined that it is in the best interest of the company and its shareholders to halt production at this time,” said Bill Pracht, board chairman. “We will monitor the situation with the hope to resume production of the facility as soon as market conditions allow.” The company reduced plant production capacity by 20 percent April 1, he said. The company employs 35 people and Pracht said part of the staff will be affected by the decision to cease production. “Every effort will be made to treat our employees as best we can,” Pracht said. “Many of our employees have been with the company since the plant opened. Knowing the impact that this decision has on our communities and families made the decision even more difficult.” The company will resume production of the facility as soon as market conditions allow, he said. The ethanol plant can produce 42 million gallons per year.
Thursday, Aug. 9, 10 a.m.
