- Two joint ventures intend to produce 150,000 tons of lactic
acid and 75,000 tons of polylactic acid annually to meet growing
demand for plant-based solutions, including eco-friendly
bioplastics
- Intended location for new production facilities will be
Decatur, Illinois, U.S., with final investment decision to be made
in 2023
LG Chem (KRX: 051910), a leading global diversified chemical
company, and ADM (NYSE: ADM), a global leader in nutrition and
biosolutions, today held a signing ceremony launching two joint
ventures for U.S. production of lactic acid and polylactic acid to
meet growing demand for a wide variety of plant-based products,
including bioplastics. Pending final investment decisions, the
joint ventures have chosen Decatur, Illinois, U.S., as the location
of their intended production facilities.
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ADM's North American headquarters in
Decatur, Illinois. (Photo: Business Wire)
The first joint venture, GreenWise Lactic, would produce up to
150,000 tons of high-purity corn-based lactic acid annually. ADM
would be the majority owner of GreenWise, and would contribute
fermentation capacity from its Decatur bioproducts facility to the
venture. The second joint venture, LG Chem Illinois Biochem, would
be majority-owned by LG Chem. It would build upon LG Chem’s
expertise in bioplastics to build a facility that will use product
from GreenWise Lactic to produce approximately 75,000 tons of
polylactic acid (PLA) per year.
ADM CEO Juan R. Luciano stated, “Sustainability is one of the
enduring global trends that is powering ADM’s strategy and growth.
Our BioSolutions platform is helping us meet that demand by
redeploying Carbohydrate Solutions production capacity to
fast-growing, higher-margin segments – including pharmaceuticals
and personal care, textiles and paper products. BioSolutions is
already growing rapidly, with $136 million in year-over-year
revenue growth in the first half of 2022, and with these two new
joint ventures, we’re planning to take the next growth step,
greatly expanding our ability to meet growing demand for
plant-based solutions. We’re pleased to expand our collaboration
with LG Chem, and we’re excited at the opportunity to bring this
new intended production and all of its economic benefits to
Decatur, our North American headquarters.”
LG Chem Chief Executive Officer Hak Cheol Shin commented, “The
establishment of this joint venture is a sustainable growth
strategy that can directly contribute in solving environmental
issues such as climate change and waste plastics,” and added, “LG
Chem is the first Korean company to build a PLA plant with
integrated production capacities ranging from raw materials to the
final product. With the establishment of this JV, LG Chem will not
only procure production capacities for highly pure lactic acid
needed for commercial-scale PLA production, but will also be able
to apply biomaterials in the development of various
high-value-added products. Based on eco-friendly materials, which
is an axis for new growth engines, we will respond to the rapidly
changing market and customers, while becoming a market leader.”
Global demand for lactic acid – which is used broadly in food,
feed and cosmetics in addition to industrials like bioplastics –
was valued at approximately USD 2.9 billion in 2021, with an
expected annual growth rate of 8%. Global demand for bioplastics
and biopolymers is projected to grow from USD 10.7 billion in 2021
to USD 29.7 billion by 2026, representing annual growth of
22.7%.
The joint ventures, which are subject to required regulatory
approvals, hope to make final investment decisions around the
Decatur projects in 2023. Pending final investment decisions and
approvals, construction would be targeted to begin in 2023, and
production in late 2025 or early 2026, with the two joint ventures
supporting more than 125 jobs in the Decatur region.
Both ventures are participating in the State of Illinois’
Economic Development for a Growing Economy (EDGE) program, which
provides incentives to job creators who plan to make investments in
Illinois.
“I am thrilled that LG Chem and ADM have chosen Decatur as home
for their joint ventures,” said Illinois Governor JB Pritzker. “Our
state’s talented workforce coupled with our mission of
sustainability make Illinois the best place for these lactic and
polylactic acid production facilities. To LG Chem and ADM: thank
you for your commitment to our state. It is innovative, plant-based
solutions like these that will help us tackle the climate crisis
head on.”
"When I led a congressional delegation to South Korea earlier
this year, I met with the CEO of LG Chem, Hak Cheol Shin, and
shared how Illinois is uniquely positioned for greater investment
as a growing hub for innovation, manufacturing and technology. I'm
proud my advocacy helped bring this important investment to
Illinois," said U.S. Senator Tammy Duckworth. “LG Chem recognizes
what I’ve long known: Illinois is a great place to do business.
Building on ADM's long history in Illinois, I’m glad the leaders at
ADM and LG Chem made this decision to help our state lead the
transition to a clean energy economy and create good-paying jobs
right here so we can help build a better, more sustainable future
for communities throughout Illinois. I will continue to spread the
message across the country and around the world that entrepreneurs
and innovative companies should call Illinois home.”
“Demand for plant-based products is on the rise and it’s no
surprise Illinois is attractive to companies looking to expand in
this industry,” U.S. Senator Dick Durbin said. “As the federal
government seeks opportunities to invest in greener buildings, it
will look to states like Illinois that are leaders in the
production of eco-products. Today’s news is a positive step and I
appreciate the efforts of state and local leaders to bring even
more jobs to Illinois.”
"Decatur has a rich heritage in manufacturing products that
serve as industry game-changers, and the two ADM and LG Chem
ventures announced today are no exception," said Nicole Bateman,
president of the Economic Development Corporation of Decatur -
Macon County. "Their collective approach to plant-based innovations
are a welcomed addition to the global industry leaders who call
Decatur home. ADM and LG Chem will find a great partner in the EDC
and City of Decatur to support their infrastructure and operational
needs to bring this project to life."
Forward-Looking Statements
Some of the above statements constitute forward-looking
statements. ADM’s filings with the SEC provide detailed information
on such statements and risks and should be consulted along with
this release. To the extent permitted under applicable law, ADM
assumes no obligation to update any forward-looking statements.
About LG Chem
LG Chem is a leading global chemical company with a diversified
business portfolio in the key areas of petrochemicals, advanced
materials, and life sciences. The company manufactures a wide range
of products from high-value added petrochemicals to renewable
plastics, specializing in cutting-edge electronic and battery
materials, as well as drugs and vaccines to deliver differentiated
solutions for its customers. LG Chem is committed to reaching
carbon-neutral growth by 2030 and net-zero emissions by 2050 by
managing the impacts of climate change and making positive
contributions to society through renewable energy and responsible
supply chains. Headquartered in Seoul, Korea, LG Chem has multiple
operation sites worldwide and generated KRW 42.7 trillion (USD 37.3
billion) in sales in 2021. For more information, please visit
www.lgchem.com.
About ADM
ADM unlocks the power of nature to enrich the quality of life.
We’re a premier global human and animal nutrition company,
delivering solutions today with an eye to the future. We’re blazing
new trails in health and well-being as our scientists develop
groundbreaking products to support healthier living. We’re a
cutting-edge innovator leading the way to a new future of
plant-based consumer and industrial solutions to replace
petroleum-based products. We’re an unmatched agricultural supply
chain manager and processor, providing food security by connecting
local needs with global capabilities. And we’re a leader in
sustainability, scaling across entire value chains to help
decarbonize our industry and safeguard our planet. From the seed of
the idea to the outcome of the solution, we give customers an edge
in solving the nutritional and sustainability challenges of today
and tomorrow. Learn more at www.adm.com.
Source: Corporate Release Source: ADM
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220815005688/en/
LG Chem Contacts: Byeongmin Woo (Team Leader, Communications
Team), Goh JangSeok/ (Specialist, Communications Team)
(02-3773-6473, 3979) ADM Contacts: Jackie Anderson (media@adm.com; 312-634-8484)
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