LG Chem and ADM: Joint Ventures in Illinois are canceled

Seoul (KR) | Chicago (IL). (adm) LG Chem, a leading global diversified chemical company, and Archer Daniels Midland Company (ADM), a global leader in nutrition and biosolutions, announced that their previously announced projects for the production of lactic and polylactic acid will not move forward.

«Since we originally announced our two joint ventures with LG Chem for lactic and polylactic acid in 2022, construction costs have skyrocketed,» said Chris Cuddy, president of ADM’s Carbohydrate Solutions business. «We looked at a variety of options, but when the time came to make final investment decisions, it had become clear that these projects no longer represented a prudent use of our investors’ capital that would meet our returns objectives. ADM remains committed to leading in the decarbonization of the industries in which we participate, and we continue to expand our biosolutions portfolio to meet growing demand for sustainably sourced solutions. We also are continuing to advance multiple projects and facilities in support of innovation, jobs and economic growth for the Decatur region, the home of our North American headquarters and our largest manufacturing and employee location.»

The two joint ventures include GreenWise Lactic, of which ADM is a majority owner, and LG Chem Illinois Biochem, which is majority-owned by LG Chem.

(Photo: ADM – Archer Daniels Midland Company)