Tate & Lyle PLC
25 May 2006 -- Tate & Lyle PLC
Tate & Lyle announces £140 million investment in new US corn wet mill
Tate & Lyle today announces plans for a £140 million (US$260 million) investment
to construct the first phase of a new corn wet mill in Fort Dodge, Iowa. The
facility will be built in two equal phases and will ultimately have a capacity
of 300,000 bushels of corn per day. The investment is subject to obtaining the
necessary regulatory approvals and negotiations with both state and local
authorities.
This investment will capitalise on Tate & Lyle's world class renewable
ingredients capabilities, alleviate projected capacity constraints in Tate &
Lyle's value added starch facilities, and increase Tate & Lyle's participation
in the rapidly growing US renewable fuel market.
It will incorporate the step-changing proprietary technology Tate & Lyle is
installing in the Loudon and Sagamore expansions, together with new proprietary
energy conservation technology. These will enable the facility to be constructed
at a lower capital cost than the traditional corn wet milling process, and to
benefit from both dramatically increased starch yields and reduced per unit
energy consumption.
The first phase will have a capacity of 150,000 bushels corn per day. It will
add 100 million gallons of annual ethanol capacity, doubling previously
announced capacity, and produce cationic starches for the paper industry. This
will free capacity in Tate & Lyle's Sagamore facility (the Group's primary US
production site for starch-based value added food ingredients) to be used for
value added modified food starches. The first phase is expected to be completed
in the year to March 2009 and cover the Group's cost of capital in its first
full year of operation to March 2010.
The project will not result in any increase in Tate & Lyle's high fructose corn
syrup capacity in the US.
'This investment will double our ethanol capacity, producing environmental and
energy saving benefits in the US and reducing American oil dependence,' said
Iain Ferguson, Chief Executive of Tate & Lyle. 'It will also enable us to
increase production of higher value added food ingredients at our Sagamore
facility.'
'This new facility will create jobs and expand our US strategic presence into
the western corn-belt, increasing demand for locally sourced crops. It also
shows how we are building on our research and development and project execution
capabilities to grow our business.'
'This is an exciting project and we look forward to working with the Iowa
Department of Natural Resources and local environmental groups to obtain the
necessary regulatory approvals.'
For more information contact Tate & Lyle PLC:
Mark Robinson (Investor Relations) Tel: +44(0)20 7626 6525
Ferne Hudson (Press) Tel: +44(0)20 7626 6525
About Tate & Lyle:
Tate & Lyle is a world leading manufacturer of renewable food and industrial
ingredients. It uses innovative technology to transform corn, wheat and sugar
into value-added ingredients for customers in the food, beverage,
pharmaceutical, cosmetic, paper, packaging and building industries. The Company
is a leader in cereal sweeteners and starches, sugar refining, value added food
and industrial ingredients, and citric acid. Tate & Lyle is the world number-one
in industrial starches and is the sole manufacturer of SPLENDA(R)Sucralose.
Headquartered in London, Tate & Lyle is listed on the London Stock Exchange
under the symbol TATE.L. In the US its ADRs trade under TATYY. The Company
operates more than 65 production facilities in 29 countries, throughout Europe,
the Americas and South East Asia. It employs 7,000 people in its subsidiaries
with a further 4,800 employed in joint ventures. Sales in the year to 31 March
2006 totalled £3.7 billion. Additional information can be found on
www.tateandlyle.com.
SPLENDA(R)is a trademark of McNeil Nutritionals, LLC
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