BAKERSFIELD, Calif. - A local company, Alon USA, is anticipating laying off about 62 employees within the next month.
While good demand exists for transportation fuels in the San Joaquin Valley - particularly, diesel fuel - current configuration of the Bakersfield Refinery requires feedstock oil produced as a byproduct of asphalt production at the Paramount operations.
Production of asphalt at Paramount has been suspended as a result of low levels of demand, industry-wide, for asphalt in the region, thus interrupting the vacuum gas oil supply needed for Bakersfield operations.
The rail project at the Bakersfield Refinery announced in the company's last quarterly conference call would enable that facility to utilize a broad range of feedstocks to produce fuels there without dependence on byproducts of Paramount.
This idling of asphalt operations in the L.A. area makes the rail project even more important to our operations in Bakersfield. We are looking forward to working through the permitting process, restarting the Bakersfield Refinery and putting people to work in Bakersfield.
The layoff at the facility is expected to happen between Jan. 28 and Feb 10.