June 21, 2011

 

ADM plans increased amino acid output for Decatur plant

 

 

Archer Daniels Midland Co. (ADM) will further boost lysine and threonine amino acid production capacity at its Decatur facility, the company announced plans on Monday (Jun 20).

 

The expansion project, which is expected to allow the company to produce 340,000 tonnes of the products annually, is scheduled to be completed in the second half of 2013. The company wouldn't specify its current production capacity.

 

"ADM is committed to growing our lysine and threonine business to meet increasing demand for these feed amino acids," said Kevin Moore, ADM vice president and general manager, Specialty Feed Ingredients. "Our feed-grade amino acids are the building blocks of protein for swine, poultry and other animals and play a significant role in their diets."

 

Lysine is used in the feed industry and is seen, in part, as a cost-effective way to supplement swine and poultry foodstuffs that are low or deficient in amino acids. Threonine helps formulate diets close to an animal's amino acid requirements, reduce dietary crude protein, decrease nitrogen excretion and improve nitrogen efficiency.

 

In addition to the Decatur project, ADM said it has begun preliminary engineering work to increase lysine production capacity at its Clinton, Iowa, corn processing complex. The target capacity in Clinton will be 70,000 tonnes.

 

Both projects include an unspecified investment in plant infrastructure to enable further capacity increases in the future, as needed.

 

Over the past few years, ADM has not highlighted some of the smaller projects it undertakes to support growth. But Chief Financial Officer Ray Young said that those kinds of projects are at the core of the company's capital spending.

 

"While they're smaller individually, they have delivered strong earnings growth over the past few years," Young said.

 

Nearly a third of ADM's capital spending in the past five years was on what it called its "big seven" projects. With those projects completed, Young said the company will spend more outside of North America as it expands the geographic scope of its business.

 

As part of the big seven spending, nearly US$500 million was spent on two bioproduct projects including a propylene ethylene glycol facility in Decatur. Young said those projects diversified and added value to ADM's products portfolio.

 

The Decatur facility began operations earlier this year. Young said ADM is continually trying to expand its corn processing capabilities. It has seven corn processing plants in North America and can make two dozen products from a kernel of corn.

 

"Each additional product we manufacture leverages the entire corn processing facility and enhances the total value of these operations," Young said.

 

One of its newest products, as it continues to diversify its product portfolio, includes propylene ethylene glycol.