Darling Ingredients Inc. has experienced a temporary work stoppage due to a fire incident at its Rendac production plant on September 13 in Son, The Netherlands.
As a result of this fire, part of the production process at the Son facility is non-operational and is expected to be down for approximately 2 to 3 weeks. Until that time, substantially all tonnage will be diverted to other company-owned assets. While in the long-term, the company ultimately expects to largely recover its losses from property and business interruption insurance, in the near term the company expects a negative impact to EBITDA (earnings before interest, taxes, depreciation and amortization) of up to $4.5 million in the third quarter of 2017.
“We will do everything possible to minimize potential inconveniences for our suppliers and plan to keep them informed about developments,” said Darling Ingredients Chairman and CEO Randall Stuewe. “We are fortunate to report no injuries were incurred and the fire was contained to only the Rendac operation at this location.”
Rendac, a business unit of Darling, specializes in the collection, processing and/or destruction of animal residues and cadavers, according to its website. Rendac converts its end products into green energy and sustainable fuel.