KiOR announces plant layoffs; Company’s future plans for Natchez uncertain
Published 12:12 am Friday, June 20, 2014
NATCHEZ — Biofuels manufacturer KiOR announced this week it has laid off workers at its Columbus facility, raising more questions about the viability of its announced Natchez project.
In a statement from the company, KiOR said more layoffs are anticipated as the company brings its Columbus facility to an idle state.
“As we get closer to achieving this idle state, our workforce needs in Columbus have declined. In an effort to maintain the plant and business respectful to KiOR’s limited cash flow, we have reduced our Columbus staff to be more inline with the plants’ current operational needs,” the statement said.
A company spokesperson declined to say when an announcement or filing about KiOR’s Natchez plans may become available, saying the company is not providing guidance on future plans.
KiOR has announced plans to construct an Adams County facility, but achieving steady-state operations in Columbus and building a second facility there were announced as steps in the company’s plans before building on the site of the county-owned former Belwood Country Club could begin.
KiOR has reportedly spent at least $10 million on the Belwood property since its mid-2012 announcement. The announced plans were to build a cellulostic fuel plant in Adams County that would create 320 direct and indirect jobs.
The Adams County plant was originally slated for groundbreaking in late 2013, but plans have been pushed back as the company changed business plans.
In September, KiOR said it would build a second Columbus plant before commencing construction in Natchez, though Natchez was still in the company’s long-term plans.
Operations in Columbus were suspended in January in an effort to optimize plant efficiency.
The company filed a report with the U.S. Securities and Exchange Commission saying the optimization project had been suspended as of March 31.
The filing said the company has the funds to operate through Aug. 31 if it is able to meet milestones in a financing agreement with one of its investors, but additional money will be needed to continue operations beyond that point and KiOR may be forced to seek protection under the U.S. Bankruptcy Code.
The company has the county-owned Belwood property under contract for six months, a contract that started in February. The February contract replaced a former agreement that had been in place but had expired.
The company can renew the reported $150,000 contract when it expires later this summer. County officials have previously said the county has the option of not renewing the contract at that time, though they have not made that decision and are waiting for news from the company.
Natchez Inc. Executive Director Chandler Russ said earlier this month despite the option on the property, it is still being marketed to other prospects as well because no deal has been closed on the land.
KiOR stock ended the day trading at $0.38 a share. At one point in 2011, the stock was worth more than $20 a share.