Valero Energy idles Ind. ethanol plant

LINDEN, Ind. (AP) -- Valero Energy Corp. has stopped production at a central Indiana ethanol plant, a step the company says is a temporary move due to rising corn prices.

The company shut down the Linden plant Tuesday, a week after it idled another of its ethanol plants in Albion, Neb., amid drought conditions in both states.

"It's not profitable to run an ethanol plant because margins are negative," company spokesman Bill Day told the Journal & Courier for a story Thursday ( http://on.jconline.com/OBMhfQ ).

Day said layoffs weren't planned and that the Linden plant's some 60 employees would continue working on maintenance jobs and other duties. He said the company expects to resume production at the plant, which is about 40 miles northwest of Indianapolis, sometime before the fall harvest.

"It depends on the markets," Day said. "We expect they'll improve soon."

However, if drought conditions continue, corn prices will likely increase even more, said Chris Hurt, a Purdue Extension agronomist.

"If we go above $6.75 or $6.80 (a bushel) on July futures, then I think we've got a real shot at retesting the all-time highs at around $8," Hurt said.

The Linden facility was among seven ethanol plants that San Antonio-based Valero bought in 2009 as part of a $477 million deal with VeraSun Energy Corp.
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Information from: Journal and Courier, http://www.jconline.com