MASON CITY – Information obtained by NorthIowaToday.com this morning that layoffs occurred Monday morning at Soy Energy, LLC in Mason City has not yet been confirmed.
Information stating that “everybody is laid off except a skeleton crew” was not confirmed in two calls to the plant Monday morning. When asked about the layoffs, a woman who answered the phone at the plant refused comment and said “That would be Jeff (Oestmann, CEO and General Manager). He’s on another line right now.” A message was left with Mr. Oestman. A second call to the plant was made, and the woman on the phone would not confirm nor deny any layoffs, stating “I’ll leave that to Jeff (Oestmann). He’s still in his office.”
Soy Energy has faced troubled times in the recent past.
An explosion took place at the plant last May, leaving no one injured. Oestmann said after that incident that “We are grateful no one was injured in the fire that took place at the Soy Energy plant.” Former employees had warned about the possibility of an explosion there.
Most recently, according to online records, Soy Energy LLC is being sued by a Des Moines construction company called Wolin & Associates Inc. A mechanic’s lien was filed in June by Wolin & Associates Inc. on Soy Energy in Cerro Gordo County District Court. Another mechanic’s lien was filed on Soy Energy, LLC in August by another entity called TALBOT WILLIAM TULLY also in Cerro Gordo County District Court.
The City of Mason City in 2010 awarded a tax increment financing incentive package to Soy Energy LLC worth hundreds of thousands of dollars in tax breaks.
6 thoughts on “Soy Energy layoffs not yet confirmed”
Regarding “with no income, how are they going to pay the creditors?”. There is no major creditor or contractor on this plant that didn’t & doesn’t have the highest regard for the Board & current management. This project has been a labor of love on many people’s parts, who have & are dedicated to seeing a thriving biodiesel business in Mason City and have substantiated that interest with large amounts of financial risk. As Mr. Oestmann says in his statement, there have been a number of issues Soy’s management have had to work through and we wish him the very best as he works through whatever is in front of him now.
I would be willing to bet they end up in bankruptsy and never reopen.
that’d be my guess too … with no income, how are they going to pay the creditors? Bankruptcy …
EX-99.1 2 a991-soystatementoct2012.htm EXHIBIT
Current volatile market conditions and continued production challenges have taken a toll on Soy Energy LLC. This letter is to inform our unit holders that in an attempt to preserve the long-term health of Soy Energy’s business, we have decided to temporarily suspend operations at our facility while market conditions remain depressed.
While this is a setback, we are hopeful that the market for biodiesel will improve in the coming months, as a result of the Obama Administration’s decision to increase the federal Renewable Fuels Standard – 2 biomass-based diesel requirements from 1 billion gallons this year to 1.28 billion gallons in 2013. We anticipate that this will have the effect of increasing the national market by almost one-third in 2013, an encouraging development that could help our company in 2013.
In the meantime, we are exploring multi partnership opportunities and/or other types of collaborations. The leadership at Soy Energy LLC continues to carefully weigh all available options in an effort to protect the company and our members.
Background
The biofuels industry is currently going through some great challenges, particularly with the volatile commodities market, and the political environment in Washington, D.C. While the RFS has helped the biodiesel market stay afloat, Congress has failed to reinstate the Biodiesel Blender’s Tax Credit. Like other plants, Soy Energy is greatly impacted by these challenges.
Soy Energy continues to work towards its goal of producing high quality biodiesel from multiple feedstocks. We acquired a Crown technology biodiesel facility in Mason City and retrofitted the plant with new technology to provide for feedstock flexibility. In late 2011, Soy Energy restarted the Mason City plant with this advanced technology. Soy Energy hopes to be a leader in the use of inedible corn oil technology. We believe that we are one of the very few plants that can take multi-feedstock, distressed, lower value inputs and convert them into biodiesel. We believe this has great potential to give us an edge in the market.
However, Soy Energy has had multiple setbacks since purchasing the Mason City biodiesel facility. These include:
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Time and costs to re-commission the core biodiesel facility and install the new front end.
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the tank rupture in May, which closed our facility down for almost a month.
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We have pending legal issues.
We are very proud of the team we have developed, and it is our hope that this shutdown is temporary, but we believe it is a necessary step to re-evaluate Soy’s business and rebuild it for the future. We are hopeful that Soy Energy can emerge from this challenge stronger than before.
Jeff Oestmann
President & CEO
Soy Energy LLC
Not doing so well with out our taxes to pay for their operation are they? Of course our city thinks they made a good deal.
Rumor is True, so my trusty source says. They work at soy energy!