A company in western Iowa that makes corn-based products for cooking has filed for Chapter 11 bankruptcy reorganization, citing high grain prices and transportation cost. Dave Hoffman of the Plymouth Oil Company says the board felt this was the best move to pay off their debts.
He says they have put together a plan to make the company profitable and have changed the management. Hoffman says the problems are due in part to high grain prices, but more so due to the high cost of transportation.
Hoffman says Plymouth Oil had hoped to obtain corn germ from their neighbors next door, Plymouth Energy, but those plans fell through. The company had to truck in the corn germ from Jefferson, Wisconsin to its plant near Merrill, which ended up being more expensive.
He says it is 380 miles and about $42 a ton to truck in the material they need. “Which makes it very tough for us to succeed,” Hoffman says. He says they are trying to get some new quotes from suppliers to cut the costs. Hoffman says the plan is to keep operating, and to keep paying bills.
The plant started operations in February of 2010. It specializes in producing food grade products from corn, such as corn oil for cooking purposes. The plant employs 25 to 30 people.
By Dennis Morrice, KLEM, Le Mars