CHICAGO, ILLINOIS, US — ADM and LG Chem announced on July 12 that their previously announced projects to produce lactic and polylactic acid will not move forward. 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.
“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.”
When the project was announced in 2022, the companies said they intended to build their production facilities in Decatur, Illinois, US, with production targeted to begin in late 2025 or early 2026. The companies said the joint ventures were formed to meet burgeoning demand for a wide variety of plant-based products, including bioplastics.
“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,” Cuddy said. “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.”
