News Releases for October 1, 2009
October 1, 2009
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Hoeven: Murphy Oil Corp. Acquires Verasun Ethanol
BISMARCK, N.D. - Gov. John Hoeven today extended a welcome and congratulations to the management and employees of Murphy Oil Corp., which earlier today acquired the former VeraSun Ethanol facility in Hankinson, North Dakota. It is the company's first renewable fuels venture.
Gov. Hoeven was informed of the acquisition by Plant Manager Wes Plummer, who said the company had searched extensively for an ethanol plant to acquire and was sold on the Hankinson site because of its outstanding workforce and well-maintained, modern facility. The purchase price was $92 million, and the company plans to invest an additional $15 million in working capital into the facility.
Murphy Oil Corp., which is based in El Dorado, Arkansas, a city about the size of Minot, has retained all 49 current employees, and is recommencing operations immediately. Plummer said the facility will grind corn this afternoon, and begin manufacturing ethanol by Saturday. As an integrated petroleum company, Murphy Oil is involved in refining, marketing and transporting petroleum products. It has access to the Magellan Pipeline, which runs through eastern North Dakota.
"Murphy Oil Corp. is a good addition to North Dakota's business community," Hoeven said. "The company's acquisition of a biofuels facility represents the importance and effectiveness of partnering traditional and renewable energy producers to create a true, multi-resource fuels business. I know we're joined by area farmers and local businesses in welcoming Murphy Oil Corp. to North Dakota and our growing energy sector."
Plummer said: "Everyone is tremendously excited about this development, which is breathing new life not just into the company, but into the entire community of Hankinson."
The 110 million-gallon-a-year Hankinson facility is one of the largest in the country, processing about 39 million bushels of corn per year, and producing 350,000 tons of Dried Distillers Grains annually. One of the most environmentally friendly facilities of its kind, it is designed to run continuously, 24 hours-a-day, 7 days-a-week throughout the year
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