MASON CITY – Renewable Energy Group this week completed the purchase of a 30-million gallon per year capacity biodiesel plant in Mason City, Iowa, formerly owned by Soy Energy, LLC.
Former Soy Energy, LLC unit holders approved the sale in a vote Monday, July 29. Pursuant to the purchase agreement, REG acquired the biorefinery for $11 million in cash and the issuance of a $5.6 million promissory note. Due to a post-closing adjustment, the note was reduced to $5.1 million.
“We are very pleased to bring REG Mason City into our fleet of biorefineries because it helps us move forward with our growth strategy,” said Daniel Oh, REG President and CEO. “We are happy to be restoring jobs to the community and look forward to working with local businesses as we work to re-open the plant.”
REG, headquartered in Ames, Iowa, plans to repair and re-start the facility using soybean oil and low free fatty acid feedstocks by the end of the year. The acquisition brings the company’s total annual production capacity to 257 million gallons. REG now owns and operates eight active biorefineries. REG Mason City, LLC joins the company’s nearby plants in Newton and Ralston, Iowa and Albert Lea, Minnesota. REG also owns active plants in Illinois and Texas.
REG has begun the hiring process and expects to employ 15 to 25 full-time employees in family wage jobs when the plant is re-started. According to documents from City Hall, the average salary will be about $16.00 per hour.
REG has also asked the City of Mason City for economic incentives, which the city council will address at its August 6th meeting. Any outstanding tax rebates that were due to Soy Energy, LLC will now go to REG if the council approves the deal. To receive the tax rebates, REG must employ at least 8 full-time employees and they each must be paid $16.00 per hour or more.
