Colwich biotech company laid-off or furloughed a third of employees, company says

A Colwich-based biotechnology company announced this week that 35% of its 201-500 employees were laid-off or furloughed because of the “drastic decline in gas and ethanol prices and the economic downturn due to COVID-19.”

ICM said in a news release that the changes would affect its facilities in Colwich, St. Joseph, Missouri, and staff at “various geographical locations.” ICM builds and supports plants that produce one-third of the world’s ethanol, according to the company’s website.

“ICM anticipates the furloughs to last around 90 days but will continue to monitor market conditions,” ICM said. “ICM has no plans for further reductions at this time.”

ICM is one of the three largest employers in Colwich, according to Mayor Angie Banz.

The news comes on the heels of Element, also one of the top employers and a joint venture between ICM and The Andersons, reducing production at its Colwich facility for maintenance during the economic downturn, Banz said in an email.

Colwich is reworking its budget to anticipate a 30% decrease in revenue and stopping the bid process on larger construction projects, Banz said.

“ICM and Element are very good to the City of Colwich, providing sponsorships of local events, assisting our retirement center with Christmas presents for its residents, and assisting the city with many public projects,” Banz wrote. “We look forward to having them back at full capacity as soon as the economy will allow.”

Both reductions are attributed to the decrease in demand for gas or ethanol.

Gas prices have been falling as demand decreases during stay-home orders around the world. A price war between Saudi Arabia and Russia has also driven down the cost. Thursday’s national average for a regular gallon of gas was $1.97 compared to $2.69 a year ago, AAA reported.

ICM is a private company started by Dave VanderGriend and his late brother, Dennis. The company’s LinkedIn page says it employees 201-500 employees.