DENCO temporarily shuts down

By Bryan Sims | January 12, 2009
Web exclusive posted Jan. 19, 2009, at 9:40 a.m. CST

Citing compressed profit margins, DENCO LLC temporarily shut down operations at its 24 MMgy corn-based ethanol plant in Morris, Minn.

According to DENCO General Manager Gerald Bachmeier, on Jan. 12 the plant stopped accepting corn deliveries. The plant won't resume operations "until profit margins improve," he said.

"We're taking a positive approach on this," Bachmeier said. "We want to maintain liquidity and capital, and remain in good-standing with our corn suppliers and creditors too."

DENCO was founded in 1999 by 340 investors. In November 2005, shareholders approved selling the company to Big Island Grain, a subsidiary of Babcock and Brown Environmental Investments. The sale was finalized in January 2006.

At the time of the sale, DENCO was producing about 25 MMgy of corn-based ethanol. The company processes approximately nine million bushels of corn per year.