Company Cites Current Market Conditions; Expects to Resume in 2008
BROOKINGS, S.D., Oct. 1 /PRNewswire-FirstCall/ -- VeraSun Energy
Corporation (NYSE: VSE), one of the nation's largest ethanol producers, today
announced that it will suspend construction of its 110 million-gallon-per-year
ethanol biorefinery in Reynolds, Ind., due to current market conditions. The
company expects to resume construction in 2008, depending upon the return of
more favorable market conditions.
"We believe it's important to be mindful of the current market conditions
and manage our business accordingly," said Danny Herron, VeraSun Chief
Financial Officer and Senior Vice President. "Given the abrupt change in
market conditions that have seen ethanol prices drop nearly 50 cents per
gallon in the last 60 days, it is prudent for us to adjust our current pace of
expansion. Due to Reynold's early stage of development, we believe it is wise
to suspend investment until the market provides an acceptable return."
VeraSun originally announced plans to build the Reynolds facility on April
18, 2007, and completed site grading and preparation work in August. VeraSun
continues to expand its business with four facilities under construction in
Hartley, Iowa, Welcome, Minn., Albion, Neb. and Bloomingburg, Ind.
"We have a large business that we are growing rapidly with four facilities
continuing under construction," said Don Endres, VeraSun Chairman and CEO. "We
remain confident in the outlook for our industry and believe that with ethanol
currently priced at a dollar less than gasoline, it provides a great value as
a high-octane, clean-burning renewable fuel that will drive additional
blending throughout the nation."
About VeraSun Energy Corporation
VeraSun Energy Corporation (NYSE: VSE), headquartered in Brookings, SD, is
a leading producer of renewable fuel. The company has 450MMGY of production
capacity through four operating ethanol production facilities in Aurora, SD,
Fort Dodge, IA, Charles City, IA and Linden, IN. Five facilities are currently
either under construction or development in Hartley, IA, Welcome, MN,
Reynolds, IN, Albion, NE and Bloomingburg, OH. Upon completion of the new
facilities, VeraSun will have an annual production capacity of approximately
one billion gallons. The Company also has plans to extract oil from dried
distillers grains, a co-product of the ethanol process, for use in biodiesel
production. The Company markets E85, a blend of 85 percent ethanol and 15
percent gasoline for use in Flexible Fuel Vehicles (FFVs), directly to fuel
retailers under the brand VE85(TM). VE85(TM) is now available at more than 110
retail locations in 11 states and Washington, D.C. For more information,
please visit VeraSun's websites at http://www.verasun.com or
http://www.VE85.com.
SOURCE VeraSun Energy Corporation
10/01/2007
CONTACT: Media, Mike Lockrem, +1-605-696-7527, mlockrem@verasun.com
or
Investors, Patty Dickerson, +1-605-696-7236, investor@verasun.com
both of VeraSun Energy Corporation
Web site: http://www.verasun.com
(VSE)
CO: VeraSun Energy Corporation
ST: South Dakota
IN: OIL
SU: