September 26, 2005

ADM increases its capacity for producing ethanol

US agribusiness giant Archer Daniels Midland (ADM) recently announced it would increase its capacity for ethanol production by more than 500 million gallons.

ADM made ethanol and high-fructose corn syrup at a plant in Iowa State. The plant had about 250 employees and was a major corn purchaser in the region.

ADM added it planned to build two new corn-milling facilities adjacent to existing ethanol plants. However, it declined to comment on the exact locations.

The construction of the new corn mills was scheduled for completion in 2008, ADM said.

The company's senior vice president Edward Harjehausen said ethanol demand for global energy needs was growing rapidly, and renewable agricultural sources such as corn increasingly met this demand.

According to an analyst, ADM's ethanol profits have recently increased with the surge in oil and gas prices.