Louis Dreyfus Company has unveiled plans to build a cutting-edge soybean-processing plant in Ohio. This announcement adds to the burgeoning expansion of oilseed crushing in North America, driven by the increasing usage of biofuels.
Louis Dreyfus Company is set to commence construction in early 2024 on the facility located in Upper Sandusky, Ohio, boasting an impressive annual soy-crushing capacity of 1.5 million metric tons, according to a company statement.
The plant is poised to be a game-changer, with the ability to produce 320,000 metric tons of edible soybean oil annually and an additional 7,500 metric tons of lecithin, a critical ingredient in various industrial applications. As per Louis Dreyfus Company, the construction is expected to be completed by 2026, as confirmed in their correspondence with Reuters.
The Regional Growth Partnership, a local economic development group, revealed separately that Louis Dreyfus Company is planning to invest a substantial $500 million in the facility. The strategic location of the plant in Ohio is aimed at servicing a wide spectrum of markets, including food, livestock feed, and the burgeoning biofuel industry.
The timing of this venture is crucial, as the United States anticipates a potential 30% surge in soybean crushing capacity over the next three years. This expansion is primarily driven by the demand for vegetable oil, catering to the growing number of renewable diesel production facilities.
Louis Dreyfus Company joins the ranks of global crop merchants expanding their footprint in the North American market. Archer Daniels Midland (ADM.N), a key player in the industry, recently inaugurated one of the first of many new crushing plants in North Dakota, as part of a partnership with oil company Marathon (MRO.N).
Moreover, this move aligns with Louis Dreyfus Company's overarching strategy for sustainable growth, as they had previously announced plans to more than double the size of their Canadian canola crushing plant in Yorkton, Saskatchewan earlier this year.
The construction of this state-of-the-art soybean-processing plant in Ohio underscores the increasing significance of biofuels and sustainable energy solutions on a global scale, with Louis Dreyfus Company poised to play a pivotal role in meeting this growing demand.
