Alto Ingredients, Inc. to Cold Idle Magic Valley Facility at Year End
Alto Ingredients (NASDAQ: ALTO) announced it will cold idle its Magic Valley, Idaho facility on December 31, 2024, while maintaining terminal services at the plant. The decision comes in response to forecasted very low to negative crush margins in the West for Q1 2025. CEO Bryon McGregor stated the company will fulfill remaining contractual obligations and plans to resume operations when economic conditions improve sustainably. The company expects these actions to positively impact overall financial results.
Alto Ingredients (NASDAQ: ALTO) ha annunciato che metterà in pausa a freddo il suo stabilimento di Magic Valley, Idaho, il 31 dicembre 2024, mantenendo però i servizi terminali nella struttura. La decisione è stata presa in risposta a margini di schiacciamento previsti molto bassi o negativi nel West per il primo trimestre del 2025. Il CEO Bryon McGregor ha dichiarato che l'azienda onorerà i contratti rimanenti e prevede di riprendere le operazioni quando le condizioni economiche miglioreranno in modo sostenibile. L'azienda si aspetta che queste azioni abbiano un impatto positivo sui risultati finanziari complessivi.
Alto Ingredients (NASDAQ: ALTO) anunció que pondrá en pausa las operaciones de su planta en Magic Valley, Idaho, el 31 de diciembre de 2024, mientras mantiene servicios terminales en la planta. La decisión responde a pronósticos de márgenes de trituración muy bajos o negativos en el Oeste para el primer trimestre de 2025. El CEO Bryon McGregor afirmó que la empresa cumplirá con las obligaciones contractuales pendientes y planea reanudar las operaciones cuando las condiciones económicas mejoren de forma sostenible. La empresa espera que estas acciones impacten positivamente en los resultados financieros generales.
Alto Ingredients (NASDAQ: ALTO)는 2024년 12월 31일에 아이오와주 매직밸리 공장을 동결 상태로 전환하고 공장에서 터미널 서비스를 유지할 것이라고 발표했습니다. 이 결정은 2025년 1분기에는 서부 지역에서 매우 낮거나 부정적인 압착 마진이 예상되기 때문에 내려졌습니다. CEO 브라이언 맥그레거는 회사가 남은 계약상 의무를 이행하고 경제적 조건이 지속적으로 개선되면 운영을 재개할 계획이라고 밝혔습니다. 회사는 이러한 조치가 전반적인 재무 결과에 긍정적인 영향을 미칠 것으로 예상하고 있습니다.
Alto Ingredients (NASDAQ: ALTO) a annoncé qu'elle mettra à l'arrêt à froid son usine de Magic Valley, Idaho, le 31 décembre 2024, tout en maintenant les services terminaux dans l'usine. Cette décision fait suite à des prévisions de marges de concassage très faibles à négatives dans l'Ouest pour le premier trimestre de 2025. Le PDG Bryon McGregor a déclaré que l'entreprise respecterait ses obligations contractuelles restantes et prévoit de reprendre ses activités lorsque les conditions économiques s'amélioreront durablement. L'entreprise s'attend à ce que ces mesures aient un impact positif sur les résultats financiers globaux.
Alto Ingredients (NASDAQ: ALTO) hat angekündigt, dass das Unternehmen seine Anlage in Magic Valley, Idaho, am 31. Dezember 2024 außer Betrieb setzen wird, während es die Terminaldienstleistungen in der Anlage aufrechterhält. Diese Entscheidung erfolgt als Reaktion auf die für das erste Quartal 2025 prognostizierten sehr niedrigen oder negativen Pressmargen im Westen. CEO Bryon McGregor erklärte, dass das Unternehmen bestehende vertr Verträge erfüllen und die Betriebe wieder aufnehmen wird, sobald sich die wirtschaftlichen Bedingungen nachhaltig verbessern. Das Unternehmen erwartet, dass diese Maßnahmen die finanziellen Gesamtergebnisse positiv beeinflussen werden.
- Maintaining terminal services operations despite facility idling
- Strategic cost reduction through facility idling to prevent financial losses
- Flexibility to resume operations when market conditions improve
- Forecasted very low to negative crush margins in Western operations for Q1 2025
- Temporary shutdown of Magic Valley production facility
- Reduced production capacity affecting revenue potential
Insights
The decision to cold idle the Magic Valley facility reflects significant operational challenges in the Western region's ethanol market. The forecast of negative crush margins in Q1 2025 indicates severe profitability pressure. Converting the facility to terminal operations is a strategic move to minimize cash burn while maintaining infrastructure and customer relationships. This defensive measure, while potentially reducing revenue, should help preserve capital and improve overall financial health. The company's ability to restart operations when market conditions improve provides operational flexibility, though the timeline remains uncertain. The Western region's ethanol market dynamics, including higher input costs and logistical challenges, have been particularly challenging compared to Midwest operations.
- Plant to Operate as a Terminal -
PEKIN, Ill., Nov. 29, 2024 (GLOBE NEWSWIRE) -- Alto Ingredients, Inc. (NASDAQ: ALTO), a leading producer and distributor of specialty alcohols, renewable fuels and essential ingredients, has announced that it will cold idle its Magic Valley, Idaho facility on December 31, 2024, yet continue to provide terminal services at the plant.
“With the first quarter 2025 forecasts of very low to negative crush margins in the West, it is fiscally prudent to idle the Magic Valley facility to minimize anticipated financial losses,” said Alto Ingredients President and CEO Bryon McGregor. “Consistent with our commitment to our customers, we will meet our remaining contractual responsibilities and then operate our Magic Valley plant as a terminal. We intend to resume operations at the facility when the economic environment improves on a more sustainable basis. We believe these actions will have a positive impact on our overall financial results.”
About Alto Ingredients, Inc.
Alto Ingredients, Inc. (ALTO) is a leading producer and distributor of specialty alcohols, renewable fuels and essential ingredients. The company is focused on products for four key markets: Health, Home & Beauty; Food & Beverage; Essential Ingredients; and Renewable Fuels. The company’s customers include major food and beverage companies and consumer products companies. For more information, please visit www.altoingredients.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements and information contained in this communication that refer to or include Alto Ingredients’ estimated or anticipated future results or other non-historical expressions of fact are forward-looking statements that reflect Alto Ingredients’ current perspective of existing trends and information as of the date of the communication. Forward looking statements generally will be accompanied by words such as “anticipate,” “believe,” “plan,” “could,” “should,” “estimate,” “expect,” “forecast,” “outlook,” “guidance,” “intend,” “may,” “might,” “will,” “possible,” “potential,” “predict,” “project,” or other similar words, phrases or expressions. Such forward-looking statements include, but are not limited to, statements concerning Alto Ingredients’ projections of future crush margins; Alto Ingredients’ ability to meet forward contract commitments to its customers; and the effects on Alto Ingredients of cold idling its Magic Valley facility. It is important to note that Alto Ingredients’ plans, objectives, expectations and intentions are not predictions of actual performance. Actual results may differ materially from Alto Ingredients’ current expectations depending upon a number of factors affecting Alto Ingredients’ business and plans. These factors include, among others, economic and market conditions, including for specialty alcohols, renewable fuels and essential ingredients; export conditions and international demand for the Alto Ingredients’ products; fluctuations in the price of and demand for oil and gasoline; and raw material costs, including production input costs, such as corn and natural gas. These factors also include, among others, the inherent uncertainty associated with financial and other projections and events, factors and risks previously and from time to time disclosed in Alto Ingredients’ filings with the Securities and Exchange Commission including, specifically, those factors set forth in the “Risk Factors” section contained in Alto Ingredients’ Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 8, 2024.
Company IR Contact:
Michael Kramer, Alto Ingredients, Inc., 916-403-2755, Investorrelations@altoingredients.com
IR Agency Contact:
Kirsten Chapman, Alliance Advisors Investor Relations, 415-433-3777, Investorrelations@altoingredients.com
FAQ
When will Alto Ingredients (ALTO) cold idle its Magic Valley facility?
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