Pacific Ethanol to Temporarily Suspend Production

Sacramento, Calif. -- Pacific Ethanol (PEIX Quote) on Friday said it plans to temporarily halt production at its 40 million gallon per year ethanol facility located in Madera, Calif., starting Jan. 12, due to extended unfavorable market conditions for ethanol.

Demand for ethanol has waned amid record-low crude oil prices and weak oil demand.

The company did not specify the length of the suspension or how this would affect its employees. A Pacific Ethanol representative could not be reached for comment.

Shares of Pacific Ethanol fell 2 cents, or 3.6%, to 58 cents per share. The stock has traded between 35 cents and $7.65 over the past 52 weeks.