The Andersons to Build Largest Ethanol Plant East of the Mississippi

MAUMEE -- The Andersons, Inc. announced Thursday the company will immediately begin construction on the largest dry-mill ethanol plant east of the Mississippi. It'll be located in Clymers, Indiana. According to the company, funding arrangements are complete and environmental permits have been obtained.

The new plant will be owned and operated by The Andersons Clymers Ethanol LLC. The Andersons will be the manager. Along with seven other investors, The Andersons will also be co-owner of The Andersons Clymers Ethanol LLC.

ICM, Inc. of Colwich, Kansas, is the designer and general contractor on the project. The Andersons says ICM is an industry leader in ethanol technology and plant construction.

The Andersons also says construction and term financing will be provided by CoBank, FCSA, Greenstone, Mid-America, Bank of the West, MetLife, Northwest Farm Credit, Western New York Farm Credit, and Pioneer Farm Credit.

"This is a major project for the company," said president and CEO Mike Anderson. "The demand for ethanol is expected to increase from less than two billion gallons in 2002 to over seven billion gallons by 2012. The Clymers ethanol plant will be strategically located next to our existing grain facility -- with access to an abundant amount of corn, utilities, and transportation infrastructure."

Completion of the plant is expected in the first quarter of 2007. Annual production will be 110 million gallons of ethanol, a gasoline additive derived from corn. The plant will also produce 350,000 tons of distillers dried grains, an animal feed ingredient.

"We expect this plant will process forty million bushels of corn each year, primarily sourced from Cass and surrounding communities, significantly benefiting area farmers and agribusinesses," said Neill McKinstray, vice president and general manager - Ethanol, a business unit of the Grain Division. "In addition to creating between forty and fifty new jobs, the construction project is expected to bring significant dollars into the community as well."

The Indiana Economic Development Corporation worked in partnership with Cass County to provide an incentive package the helped secure the ethanol plant.

The Andersons operates 13 agriculture-related business units in 10 Indiana counties, including four grain terminals that handle in excess of 50 million bushels of grain each year.