New Refinery to be built on Gulf of Mexico
1 November 2005 - MINNEAPOLIS and BREAUX BRIDGE, La. — Cargill Sugar North America and Louisiana Sugar Cane Products, Inc., (LSCPI) today announced their intention to form a joint venture to construct and operate a million-ton-per-year sugar refinery at Cargill's Terre Haute Marine Facility in Reserve, La. LSCPI would provide the entire raw sugar production from its 10 sugar cane mills -- about 800,000 tons per year -- to the joint venture once it becomes operational. Cargill would sell and distribute refined sugar products from the joint venture to food and beverage customers.
Groundbreaking for the refinery is expected to take place in spring 2006 and production would commence by early 2008. The project is subject to completion of definitive agreements and corporate approvals by Cargill and LSCPI.
LSCPI is a cooperative representing 10 cane mills and their 700 growers. LSCPI markets about 75 percent of the raw sugar produced in Louisiana.
“These are challenging yet exciting times for cane growers and their mills,” said Mike Daigle, board chairman of LSCPI. “We look forward to working with Cargill in this venture, which will allow the mills and the growers to participate in a value added chain from the fields of Louisiana to American consumers. This is the most significant new enterprise in the history of the Louisiana sugar cane industry.”
For Cargill, this would be the third marketing alliance with U.S. sugar producer groups in the past three years, but the first involving cane growers and millers. Cargill’s other U.S. sugar marketing alliances are with the Southern Minnesota Beet Sugar Cooperative and Wyoming Sugar Company, LLC.
“The joint venture will allow Cargill to extend its full service sweetener capabilities to a whole new geography,” said Cargill Sweeteners North America President Pat Bowe. “In addition to the prospect of expanding the range of customers we can serve, we’re thrilled at the opportunity to contribute to Louisiana’s economic rebirth in the aftermath of Hurricane Katrina with an investment that goes beyond rebuilding to real expansion."