California’s Rentech Pulls Plug On Wawa Pellet Plant

A California company is entertaining buyers for its Wawa pellet mill as it begins shuttering the operation this month. Rentech announced Feb. 21 that its Wawa pellet mill is being indefinitely idled while the company conducts a “strategic review” of that facility and the company’s entire direction. The company said chronic “equipment and operational issues” […]

A California company is entertaining buyers for its Wawa pellet mill as it begins shuttering the operation this month. Rentech announced Feb. 21 that its Wawa pellet mill is being indefinitely idled while the company conducts a “strategic review” of that facility and the company’s entire direction.

The company said chronic “equipment and operational issues” at the mill will cost them additional money that they haven’t budgeted for. “Today’s decision also results from continued uncertainty around profitability on pellets produced at the facility, making additional investment in the facility uneconomic for Rentech at this time,” said a company news release.

An undetermined number of employees will be laid off over a two-week shutdown period. A skeleton crew will remain in place on a care and maintenance basis in case someone comes along to invest in the facility or purchase the operation.

According to the news release, shutting down Wawa allows Rentech to preserve cash as it “explores strategic alternatives” for the mill while “ongoing discussions” take place with “third parties.”

“While we believe that the issues we have been experiencing at the facility can be resolved with additional capital investments, we have concluded that it is not economical to pursue those investments or to continue to operate the facility at this time,” the company said. The company has experienced persistent problems at the mill before and after replacing the conveyors.

From Northern Ontario Business: https://www.northernontariobusiness.com/regional-news/northeastern-ontario/cash-strapped-rentech-pulls-plug-on-wawa-pellet-mill-541492

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