Biofuel: Mississippi Ethanol Plant Closing in Vicksburg

Ergon BioFuels plant, Vicksburg, Mississippi. Photo: Ergon

Ergon BioFuels, LLC, a subsidiary of Ergon, Inc., announced on Friday, September 14 that it will close its ethanol plant in Vicksburg, Mississippi, in December 2018.

The 56.5 million gallon per year plant was constructed in 2007 as a joint venture between Ergon Ethanol, Inc., and Bunge North America, Inc. The plant had previously halted production in December 2012. Ergon purchased Bunge’s ownership in the facility in 2013 and restarted the plant in July 2015.

“Ergon management has made significant investments at Ergon BioFuels over the years and had planned additional improvements to increase ethanol and corn oil yields going forward,” said Kris Patrick, Ergon COO. “Unfortunately, continued erosion in margins, coupled with underperforming production equipment and the economic challenges of being a destination plant, forced us to make this very difficult decision.

“We have a family-oriented culture and consider employees to be Ergon’s most valued asset,” Patrick commented. “We will work to place as many Ergon BioFuels employees as possible in our other Vicksburg and Jackson businesses.”

A significant employer in the area, Ergon’s Vicksburg operations include Ergon Refining, Ergon Asphalt & Emulsions, Ergon Maintenance Services, Ergon Trucking, Magnolia Marine Transport Company, Ergon Marine & Industrial Supply and Ergon BioFuels.

On August 1, Ergon, Inc., announced that its wholly owned subsidiary, Ergon Chemicals, LLC, completed the purchase of Resinall Corp, Resinall Mississippi Inc., Industrial Transport Inc., and Resinall QALICB, LLC, (Resinall) on August 1, 2018.

Resinall is a manufacturer of thermoplastic resins and polymers with manufacturing facilities in Hattiesburg, Mississippi, and Severn, North Carolina. This acquisition moves Ergon into the specialty chemicals market, building upon the company’s commitment to being a global leader in the refining and marketing of specialty products.

Headquartered in Jackson, Mississippi, Ergon, Inc., and its consolidated subsidiaries are built on a foundation of petroleum-related enterprises begun in 1954 by its Chairman, Leslie B. Lampton. Starting as a petroleum retailer with only two employees, Ergon has evolved into a network of market-leading companies employing over 2,300 people.

Ergon’s roots are in the petroleum industry service areas, including trucking and propane distribution, marine transportation and petroleum marketing services. Through acquisitions and from merging other company operations into a base of entities that would become Ergon subsidiaries, including ventures in refining, terminaling, asphalt marketing, mid-river operations, exploration, maintenance support and real estate, we have moved forward to become a well-diversified portfolio of companies.

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