Yepper, told you that ethanol was such a "great deal"!
Economically and environmentally, it just doesn't make sense--
Ethanol plant builder lays off 105
BY PHYLLIS JACOBS GRIEKSPOOR
The Wichita Eagle
ICM Inc., the nation's leading designer of ethanol plants, has laid off 105 employees.
ICM officials blamed the layoffs on a sluggish economy that has weakened the U.S. dollar and made it difficult to find lenders to fund domestic projects.
The layoffs affect multiple departments at ICM, which had been on a rapid growth curve over the past several years. Before the layoffs, ICM had more than doubled the size of its headquarters in Colwich, building two new office projects. It employed 671 workers before the layoff.
Affected workers were notified Tuesday and were given information on extended benefits and severance pay.
"This is in no way a reflection of the valued work performed by our employees," said Dave Vander Griend, president and chief executive of ICM. "During recent quarterly employee luncheons, I have addressed the volatile market conditions that have persisted, such as commodity market concerns and the projects slowdown."
Ethanol companies have faced challenges over the past several months as prices for corn -- ethanol's primary feedstock -- have doubled. Construction costs also have risen rapidly, driven in part by higher petroleum products and transportation costs.
Several projects have had construction slowdowns and others have been delayed by difficulty in securing financing. One Kansas company, Orion Ethanol at Pratt, has closed amid financial problems.
The expansion of ethanol production, forecast to be more than 2 billion gallons in 2007, was actually only about half that.
ICM was founded in 1995 and has designed and engineered more than 75 ethanol plants in the United States and Canada. There are currently 25 projects under construction that use ICM technology.
ICM will hold a job fair Friday to help those who have lost jobs. It has invited several local employers to participate. Employees also will get job placement assistance and counseling through the employee assistance program.
Vander Griend said ICM remains committed to being a major contributor to the ethanol industry, and he is confident conditions will improve.
"We must take necessary action to sustain the health and future of our company," he said. "We recognize the impact of this on our employees, and we'll do our best to work with them through this difficult period."
He said ICM will continue its focus on research and development. The company expects to be a leader in the effort to develop technologies that will convert biomass on a commercial scale to ethanol.
"We're going to remain committed to the long-term growth opportunities for our company and our industry," Vander Griend said. "We're confident that the biofuels industry will continue to mature and achieve greater growth.