July 30, 2004

U.S. Lysine Plant To Double In Size By 2009

The Midwest Lysine plant in Blair will double in size over the next five years, owners of the U.S. plant stated.

Degussa Corp., which runs the facility that produces the feed additive for poultry and hogs, said it plans to make a $75 million investment in the plant next to Cargill's corn milling operations and hire another 30 people. It currently employs about 70 people.

When the plant is fully operational sometime in early 2009, it will use 22 million bushels of corn from Nebraska producers. This is the equivalent of 2 percent of the state's entire corn production, said plant vice president Udo Gruber. The plant is projected to use 10.5 million bushels this year, he added.

Midwest Lysine was founded in 1998 to produce a form of the essential amino acid L-lysine used for animal nutrition. The $100 million initial plant was jointly owned with Cargill until 2003 when Degussa, which is based in Germany, took over full ownership.

Midwest Lysine receives its dextrose from the Cargill plant, which had said it will be able to handle the projected growth, Gruber said.