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Hawaii sugar plantation to close
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Posted on Sep 13 2008
[B]KAUAI, Hawaii[/B] (The Garden Island/PIR)—Gay & Robinson Inc. announced to workers yesterday morning its plans to exit the sugar industry after more than a century on Kaua‘i, citing the increasing expense of its sugar operation as it pursues a transition to ethanol production.
The company has stopped planting cane, but will continue to harvest what’s in the ground through August 2010, said E. Alan Kennett, Gay & Robinson president and general manager.
The company is continuing negotiations to lease the sugar mill, terminal and other assets to Pacific West Energy LLC, which intends to grow even more sugar than Gay & Robinson for the production of ethanol and electricity, as well as hire all of the existing 227 workers.
“We are now moving forward and intend to be at the forefront of a new era as renewable energy producer and helping to reduce Kaua‘i’s imports of fossil fuels for our energy needs,” Kennett said.
Last year, Gay & Robinson said it planned to invest $80 million to build an ethanol plant that could open as early as this year. The venture, which has yet to get off the ground, has now become the responsibility of Pacific West Energy.
Pacific West Energy President William Maloney said progress depends on two key factors: Concluding revised sugar mill arrangements with Gay & Robinson and acquiring the additional lands it needs to operate.
