Tate & Lyle Announces $260 Million Investment in New U.S. Corn Wet Mill
Thursday May 25, 11:40 am ET
LONDON, May 25 /PRNewswire-FirstCall/ -- Tate & Lyle (TATYY) today announces plans for a $260 million (140 million pounds Sterling) investment to construct the first phase of a new corn wet mill in Fort Dodge, Iowa. The facility will be built in two equal phases and will ultimately have a capacity of 300,000 bushels of corn per day. The investment is subject to obtaining the necessary regulatory approvals and negotiations with both state and local authorities.
This investment will capitalise on Tate & Lyle's world class renewable ingredients capabilities, alleviate projected capacity constraints in Tate & Lyle's value added starch facilities, and increase Tate & Lyle's participation in the rapidly growing U.S. renewable fuel market.
It will incorporate the step-changing proprietary technology Tate & Lyle is installing in the Loudon and Sagamore expansions, together with new proprietary energy conservation technology. These will enable the facility to be constructed at a lower capital cost than the traditional corn wet milling process, and to benefit from both dramatically increased starch yields and reduced per unit energy consumption.
The first phase will have a capacity of 150,000 bushels of corn per day. It will add 100 million gallons of annual ethanol capacity, doubling previously announced capacity, and produce cationic starches for the paper industry. This will free capacity in Tate & Lyle's Sagamore facility (the Group's primary U.S. production site for starch-based value added food ingredients) to be used for value added modified food starches. The first phase is expected to be completed in the year to March 2009 and cover the Group's cost of capital in its first full year of operation to March 2010.
The project will not result in any increase in Tate & Lyle's high fructose corn syrup capacity in the U.S.
"This investment will double our ethanol capacity, producing environmental and energy saving benefits in the U.S. and reducing American oil dependence," said Iain Ferguson, Chief Executive of Tate & Lyle. "It will also enable us to increase production of higher value added food ingredients at our Sagamore facility."
"This new facility will create jobs and expand our U.S. strategic presence into the western corn-belt, increasing demand for locally sourced crops. It also shows how we are building on our research and development and project execution capabilities to grow our business."
"This is an exciting project and we look forward to working with the Iowa Department of Natural Resources and local environmental groups to obtain the necessary regulatory approvals."
About Tate & Lyle:
Tate & Lyle is a world leading manufacturer of renewable food and industrial ingredients. It uses innovative technology to transform corn, wheat and sugar into value-added ingredients for customers in the food, beverage, pharmaceutical, cosmetic, paper, packaging and building industries. The Company is a leader in cereal sweeteners and starches, sugar refining, value added food and industrial ingredients, and citric acid. Tate & Lyle is the world number-one in industrial starches and is the sole manufacturer of SPLENDA® Sucralose.
Source: Tate & Lyle
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