Soybean Processing Construction Brings Billions in U.S. Spending

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Written by Eric Funderburk for IIR News Intelligence (Sugar Land, Texas)

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Summary

Construction on soybean processing facilities is underway at various locations in the U.S., with many other projects, involving both grassroot construction and expansions, lined up for the future.

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Big Business

Soybean crushing facilities play a key role in the U.S. economy, providing cattle feed and oils used for both edible purposes and as a feedstock for fuels. Across the U.S. Midwest and Great Lakes areas, soybean processing plants are garnering significant investments for both grassroot construction and expansions of existing plants.

Current Construction

A grassroot plant is at the heart of one of the largest U.S. soybean construction projects presently underway: Louis Dreyfus' new plant in Upper Sandusky, Ohio, which is expected to be completed this year following two years of construction and will start the process of ramping up toward its 1.5 million-ton-year crushing capacity. The facility is expected to produce around 320,000 metric tons of edible soybean oil per year accompanied by 7,500 tons per year of lecithin production. Readers can access details of the project, including construction timelines, key contact details, and equipment and service needs, by clicking here.

Soybean meal for livestock feed is the driving purpose of another substantial grassroot plant being built in Hennepin, Illinois. Marquis Incorporated has enlisted agriculture-focused construction firm Fagen Incorporated to head up work on the plant, which will be capable of processing around 80 million bushels per year of soybeans, aiming for production of 1. 5 million tons of soybean meal annually.

Other major projects underway include expansions of existing plants, notably from Archer Daniels Midland Company (ADM) in Illinois and CGB Enterprises at its plant in Mount Vernon, Indiana.

Future Construction

Multiple U.S. soybean-related construction projects are on the horizon, notably from Archer Daniels Midland, which is considering more than 15 capital projects for the future. However, the leading soybean spender for future projects is CHS Incorporated, which is focusing its efforts on a massive facility planned to go up in Evansville, Wisconsin. The plant will be a full-scale crushing facility and oil refinery, targeting meal for the livestock market and oil for both edible and fuel use. While the construction kickoff date has been pushed out over the years, a recent September 14 announcement from CHS suggests construction could begin in the coming weeks, putting the plant on track for completion in late 2028. Industrial Info Resources data show the Evansville facility is aiming for around 1.9 million tons per year of soybean oil.

The Evansville plant is being touted as one of Wisconsin's first large-scale crushing facilities, which has left an opening for CHS to occupy in southern Wisconsin's currently limited processing capacity. Details of the project, including key contact details and design-engineering information can be accessed by clicking here.

Archer Daniel Midland's 18 planned capital projects cover a gamut of states across the Great Lakes region and U.S. Midwest, extending as far southeast as Georgia, where ADM plans to replace the flaking rolls of its 3,500-ton-per-year plant in Valdosta. While Illinois is the proposed destination for most of ADM's future spending, more projects are actually on the books for Nebraska and Missouri, which together account for 10 planned projects, resulting in more than $40 million in anticipated investment spending.

Key Takeaways

• Current construction of two grassroot soybean processing plants in Ohio and Illinois is bringing in investments of more than $790 million.
• The biggest planned project on the horizon is CHS' new plant in southern Wisconsin, construction of which is expected to kick off soon.
• Industrial Info Resources also is tracking more than 50 maintenance events planned for the future at U.S. soybean plants.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).