April 23, 2020 / 11:15 PM / a month ago

ADM to temporarily idle ethanol output at 2 facilities on lower gasoline demand

April 23 (Reuters) - Grains trader Archer Daniels Midland Co said on Thursday it will temporarily idle ethanol production at two of its corn dry mill facilities due to lower gasoline demand.

The decision affects the corn dry mill facilities in Cedar Rapids, Iowa, and Columbus, Nebraska and ADM said it plans to furlough about 90 employees in each facility for four months.

"The current market conditions and the low consumer demand for gasoline at this time have greatly impacted the entire ethanol industry," Chris Cuddy, president of the company's carbohydrate solutions unit said.

Biofuel producers have also been among those hit by the energy industry in crisis, due to plummeting demand for gasoline and jet fuel following severe global travel restrictions to stem the coronavirus spread.

"The evaporation of fuel demand due to COVID-19 has been a knock-out blow to biofuel plants across the heartland," biofuel trade association Growth Energy said. (Reporting by Shanti S Nair in Bengaluru and Stephanie Kelly in New York; Editing by Shounak Dasgupta)

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