In the United States (US), DowDuPont, the Dow and DuPont portfolio merger process to form three global companies in agriculture, materials science and specialty products respectively, has decided to shutter its cellulosic ethanol plant in Nevada, Iowa as part of its US$3 billion cost-cutting programme. At the same time, it plans to find a buyer for the 30 million gallons (≈ 116 million litre) nameplate capacity facility.
The plant, which was officially open in October 2015, was to use 375 000 dry tons of corn stover annually supplied by farmers in the region but already in April 2016, the corn stover programme was halted as storage capacity was filled and production ramp of the plant behind schedule.
DowDuPont, which finalized its US$150 billion merger on August 31, plans to cut US$3 billion in costs annually as it spins off three separate businesses: agriculture, material sciences, and specialty products. The closing the plant was part of DowDuPont’s announcement on November 2 that it will cut its global workforce by 5 to 7 percent, consolidate and shut down some buildings and facilities, and centralize purchasing.
A maintenance crew will be kept to keep the plant in working order whilst the company looks to find a buyer for the facility.
