AVONDALE, LOUISIANA, US — Bunge Global SA has broken ground for a planned expansion of the tropical and specialty oils refinery in Avondale, Louisiana, US, that it acquired last year from Fuji Oil.

The project includes a new vegetable oil processing line and additional structures to support increased oil production, according to the Jefferson Parish Economic Development Commission (JEDCO), which participated in the Aug. 29 groundbreaking ceremony with Bunge executives, local officials and community partners. JEDCO said the enlarged facility, which will connect with the existing Bunge plant, is expected to be commissioned by the end of 2025.

“We are excited about our future in Avondale, including the opportunity to expand our product offerings and meet the needs of our customers throughout North America,” said Brian Hudson, general manager of Bunge’s tropical and specialty oils division. “We are thankful for the support from great local partners and look forward to commissioning the expanded facility.”

The project represents a $225 million investment, the Times-Picayune reported. With the expansion, Bunge stands to triple the Avondale site’s processed oil volume to 6,000 standard rail cars annually, which would make the facility the largest palm and specialty oils processing plant in North America, Hudson told the Times-Picayune.

St. Louis, Missouri, US-based Bunge acquired the Avondale refinery from Fuji Oil New Orleans LLC through a joint venture in April 2023. A recently built facility, the refinery is situated in IMTT’s (International-Matex Tank Terminals) Avondale Terminal. Bunge said at the time that the transaction would provide a scalable, port-based footprint that could connect its North American food, feed and fuel customers to global markets. The company also had signaled that it planned to expand the refinery, which began serving customers in the 2023 second quarter.

Currently, Bunge employs 50 people at the 15-acre Avondale oil facility, and the amplified output from the expansion will require a workforce increase at the site, JEDCO said.

“This expansion aligns directly with JEDCO and Jefferson Parish’s vision for the West Bank and in the Avondale area,” said Jerry Bologna, president and chief executive officer of JEDCO. “The continued investment into the Bunge facility helps to position Jefferson Parish as a global destination for food product manufacturing.”

The Avondale refinery expansion is part of an approximately $1 billion investment by Bunge in the New Orleans area. In early March, the global agribusiness, food and ingredients giant broke ground on a new oilseed processing plant near its existing processing facility in Destrehan, Louisiana. Slated to become operational in 2026, the planned oilseed facility is a reportedly $800 million project of Bunge Chevron Ag Renewables LLC, a renewable fuels joint venture of Bunge North America and Chevron USA Inc.