ADM and chemical company LG Chem have launched two joint ventures for US production of lactic and polylactic acid to meet the growing demand for plant-based products.
The first joint venture, called GreenWise Lactic, will produce up to 150,000 tons of high-purity corn-based lactic acid each year. ADM will serve as the majority owner of GreenWise and contribute fermentation capacity from its Decatur bioproducts site.
The second venture, LG Chem Illinois Biochem, will build upon LG Chem’s expertise in bioplastics by creating a facility that will use products from GreenWise Lactic to manufacture around 75,000 tons of polylactic acid annually.
ADM CEO Juan R Luciano said: “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.”
He continued: “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 CEO Hak Cheol Shin said: “The establishment of this joint venture is a sustainable growth strategy that can directly contribute to solving environmental issues such as climate change and waste plastics.”
He 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.”
The joint ventures have also chosen Decatur, Illinois, as the location of their production facilities, pending final investment decisions. It is hoped the final investment decision will be made by 2023.
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