Gay & Robinson exiting sugar business

Kauai-based Gay & Robinson said today it will exit the sugar industry and move forward in its negotiations for Pacific West Energy LLC to proceed with plans for ethanol and energy development at the Kaumakani plant.
Gay & Robinson said it intends to lease the sugar mill, terminal and other assets as needed to Pacific West Energy, which intends to expand sugar cultivation on the island for the production of ethanol and electricity. Gay & Robinson also plans to lease some of its agriculture lands to various agriculture entities to be announced at a later date.

In addition, Gay & Robinson said it will expand its hydroelectric power production by installing an additional hydro unit that will increase capacity by an additional 5 to 10 megawatts of power to supply renewable energy to Kauai's power grid.

The company said it will continue to honor its contractual obligations to its workers, including current employees as well as retirees. It will be meeting with the International Longshore and Warehouse Union Local 142 to discuss the transition.

"We are now moving forward and intend to be at the forefront of a new era as a renewable energy producer helping to reduce Kauai's imports of fossil fuels for our energy needs," said E. Alan Kennett, president and general manager of Gay & Robinson.

Gov. Linda Lingle said that while sugar has been an integral part of the heritage and way of life for generations of Kauai residents, the state is encouraged that the company will continue to be an important part of the island's economic future.

"The company's transition from sugar to renewable energy signals a new chapter for Kauai and will help position the island for a more secure, clean energy future that is less dependent on imported oil," Lingle said. "The state will work closely with Gay & Robinson and Pacific West Energy LLC to assist during the transition, including expediting the permits and approvals necessary to transform this kamaaina company."

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