From staff reports

news@joplinglobe.com

CARTHAGE, Mo. — Three weeks after withdrawing its bid to go public in an effort to raise capital, Renewable Environmental Solutions in Carthage appears to be laying off much of its work force.

Officials with the Missouri Career Center said Tuesday that they had been told of layoffs involving 49 workers at the plant that converts animal products into oil products and fertilizer.

Officials with Butterball Turkey Co. on Tuesday confirmed that the Carthage processing plant on Monday had stopped delivering turkey parts to the RES plant.

City leaders have been told that the plant employed about 50 workers, said Mayor Jim Woestman. He said he has heard reports that the plant may be closing, but he has been unable to confirm them. He said City Administrator Tom Short could obtain no answer from the local plant, and calls to corporate headquarters in New York were not returned.

Jasen Jones, executive director of the Workforce Investment Board of Southwest Missouri, said the Missouri Career Center is setting up a Rapid Response Team for employees “affected by potential layoffs.” Jones said the plans are based on reports from workers and the fact that the state also had not heard from the company.

“We don’t know whether it’s a full, partial layoff, or whether it’s temporary or permanent,” he said.

On Feb. 12, Changing World Technologies, the RES parent company, filed documents with the Securities and Exchange Commission withdrawing its bid to go public. Changing World Technologies in August launched a bid to go public in a bid to raise $100 million.

The company has been dealing with lawsuits over construction and odor emissions from its Carthage plant. In addition, previous SEC filings indicate the company was losing tens of millions of dollars per year, has not been able to operate the Carthage plant at full capacity, and has experienced times when the plant temporarily shut down.

The company reported a net loss of $21.8 million in 2006, followed by a net loss of $19.9 million for 2007 and a net loss of $18.8 million through Sept. 30, 2008. The company had an accumulated deficit of $117.8 million as of Sept. 30, the filings state.

Brian Appel, chairman and chief executive officer of Changing World Technologies, did not return calls on Tuesday. Missouri Department of Natural Resources officials who have monitored the plant said they had not been informed of any change in RES operations. A DNR spokeswoman in Jefferson City said workers from the Springfield office were to inspect the plant Tuesday, but she had not received a report on the visit.

Legal issues

RES has struggled with complaints about odor emissions from its plant since it opened in May 2004. The company is the subject of a lawsuit filed by two Carthage residents who contend that the company has been negligent, that odors from the plant are a nuisance, and that damages should be awarded to them and other Carthage residents who also have been affected.

Attorneys for both sides on Feb. 18 argued a motion filed by RES, whose attorneys contend that the case should be moved to another county.