Plant Expansions
Tate & Lyle PLC
TATE & LYLE ANNOUNCES £100 MILLION INVESTMENT IN GROWTH
1. Loudon, USA facility
Tate & Lyle today announced plans for a £43 million (US$75 million) expansion to
its Loudon, Tennessee, facility. It will enable Tate & Lyle to increase
production of value added products and will also supply substrate for the new
joint venture, DuPont Tate & Lyle BioProducts, LLC (being constructed adjacent
to the facility) which will produce 1,3 propanediol (Bio-3G), the key building
block for DuPont(TM) Sorona(R). Ethanol capacity will also be increased by 37
million gallons per year. There will be no increase in high fructose corn syrup
capacity.
By implementing proprietary technology, the expansion will both dramatically
increase starch yields and reduce per unit energy consumption. The project
includes investment in substantial environmental improvements. Subject to
regulatory permit approvals, construction will begin later this financial year
and the new capacity is scheduled to be operational in October 2007. The project
is expected to cover the Group's cost of capital in the first full year of
operation.
'These proprietary technologies, which have been developed by Group engineers in
Europe and the Americas, allow significantly higher starch yields and lower
energy consumption,' said Stanley Musesengwa, Chief Operating Officer of Tate &
Lyle. 'In addition to lower operating costs, the expansion will be implemented
at a lower capital cost per bushel than the traditional corn wet milling process
and is an example of Tate & Lyle's experience and innovation at work.
'These are exciting times for the Loudon facility, which is seeing considerable
investment and is creating jobs in the local construction industry. We look
forward to working with the Tennessee Department of Environment & Conservation
and local environmental groups and are confident that construction will begin
shortly.'
2. Sagamore, USA facility
Tate & Lyle today announced plans for a £57 million (US$100 million) expansion
to its Sagamore facility in Lafayette, Indiana to increase capacity for food
ingredient products. This will contribute to the delivery of Tate & Lyle's
strategy to grow the contribution from value added products. The project
includes investment in substantial environmental improvements.
Subject to regulatory permit approvals, construction will begin later this
financial year and the new capacity is scheduled to be operational by January
2007. The project is expected to cover the Group's cost of capital in the first
full year of operation.
The Sagamore plant is Tate & Lyle's primary US production site for modified food
starches and is the flagship site for value added dent and waxy based food
starch products. These products are used in a wide array of dairy, beverage,
baking, snack, and dressings. Tate & Lyle has been successful in growing these
markets and without this expansion production capacity at the plant would have
become a constraint. This expansion is part of the Group's investment in growth.
'We have undertaken significant work to understand and anticipate changing
consumer preferences and eating habits, and how the food processing and food
service industries will respond to these trends,' said Iain Ferguson, Chief
Executive of Tate & Lyle. 'The cumulative impact of this work coupled with our
greater understanding of, and deeper involvement with, our customers is that we
recognize the need for investment in modified food starch and maltodextrin at
Sagamore to meet growing demand.
'The investments in both Sagamore and Loudon reflect our firm commitment to
deliver against our strategy to grow our business, and in particular to grow the
contribution from value added products. The expansions will increase the corn
grind and demand for locally sourced crops whilst the environmental improvements
are designed to reduce emissions and reflect Tate & Lyle's commitment to
environmental performance and to the surrounding community.'
Contacts
Mark Robinson, Head of Investor Relations
Tel: 020 7626 6525 or Mobile: 07793 515861
investorrelations@tateandlyle.com
Ferne Hudson, Head of Media and Public Relations
Tel: 020 7626 6525
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 60 production facilities in 28 countries,
predominately throughout Europe, the Americas and South East Asia. It employs
6,700 people in its subsidiaries with a further 4,500 employed in joint
ventures. Sales in the year to 31 March 2005 totalled £3.3 billion. Additional
information can be found on this website. www.tateandlyle.com
SPLENDA(R) is a trademark of McNeil Nutritionals, LLC The DuPont Oval,
DuPont(TM), The miracles of science(TM), Bio-PDO(TM) and Sorona(R) are
registered trademarks or trademarks of DuPont or its affiliates.