FAIRFIELD — Unity Ethanol, LLC, a Fairfield-based company, announces the completion of a merger with Cedar River Ethanol, LLC.

Both Unity Ethanol and Cedar River Ethanol are development stage limited liability companies created for the purpose of developing, owning and operating 110 million gallons per year ethanol production facilities.

“Each facility will bring around 40 to 50 jobs to the area,” according to Unity Ethanol’s Chief Operations Officer, Jason Egli. “We think on average it will also bring $2 million in salaries.”

Besides jobs, the two facilities also will boost economic productivity within the areas.

“We are going to get all our raw materials locally,” Egli said. “Most of the corn will come from the local elevator markets.”

He said the merger will provide the companies with a strategic competitive advantage due to the scale of the two combined facilities. The plants will utilize the same technology, share management personnel and benefit from economies of scale in grain origination and the marketing of ethanol and distillers grains.

“Each facility will cost around $260 million,” Egli said.

The sites of the two facilities are in Wapello and Louisa counties.

The Wapello County site will be locally off 120th Street just north of Ottumwa.

Both sites are located off of the Cedar American rail within approximately 60 miles of each other.

The merger became effective Aug. 24. Under the new structure, Unity Ethanol, LLC is the surviving parent company and Cedar River Ethanol is a subsidiary. Unity Ethanol will operate out of offices in Fairfield until operations of the plants begin.

Unity Ethanol anticipates operations for the Wapello County facility to begin sometime between April and September of 2009 and operations of the Louisa County facility sometime between July and December of 2009.

Scott Niles can be reached at (641) 683-5360 or via e-mail at sjniles@mchsi.com.