02/03/2010
Louisiana Sugar Refining Marks Official Groundbreaking For New Million-Ton-Per-Year Sugar Refinery
Joint venture between Cargill Inc., Sugar
Growers and Refiners Inc. and Imperial Sugar Co. will strengthen
the competitiveness of Louisiana's sugar industry
GRAMERCY, La. - Today, Gov. Bobby Jindal joined Cargill Corn
Milling North America President Alan Willits, Sugar Growers and
Refiners Inc. General Manager Lonnie Champagne and Imperial Sugar
Company President and CEO John Sheptor at the groundbreaking of
Louisiana Sugar Refining LLC's, or LSR, new million-ton-per-year
sugar cane refinery in Gramercy. LSR, a joint venture between
Cargill Inc., Imperial Sugar Company and Sugar Growers and Refiners
Inc., represents a $190 million capital investment and expects to
begin commercial operations in 2011.
"This is a great day for our sugar industry and for Louisiana,"
said Gov. Jindal. "Seeing this project through was about standing
up for sugar growers and making sure their industry continues to
prosper. This project will significantly enhance the
competitiveness of Louisiana's sugar industry, and today's
groundbreaking is another example of our continuing aggressive
economic development efforts to attract major investments in
modern, value-added agribusiness facilities.
"Indeed, these are the kinds of projects that not only create
good jobs for our people but also strengthen the competitiveness of
our agriculture industry. Facilities like LSR's in Gramercy ensure
that we process our goods right here in Louisiana where we can
benefit from the good jobs they create - rather than sending our
raw goods to other states for processing like our state has too
often done in the past."
Because of LSR, most of Louisiana's sugar mills, growers and
landowners will participate in a fully integrated, farm-to-market
sugar production business for the first time. This will provide
greater certainty of supply, as well as enhanced long-term
viability for Louisiana's sugar industry.
"This is a very important day for the Imperial families who have
worked in and supported the Gramercy refinery for decades," said
Sheptor. "The new LSR refinery represents a promise that
generations to come will be able to continue in their family sugar
heritage."
"This is a unique opportunity for Cargill to enter the U.S.
sugar processing industry in a significant way. Partnering with the
grower/producer is a long-time Cargill strategy," said Willits.
"This will be the most significant new enterprise in the 200 plus
year history of the Louisiana sugar cane industry, for growers and
their mills to be integrated with the refining and marketing
process, providing them with a new revenue stream potential."
When LSR begins commercial operations in 2011, Cargill will be
the exclusive marketer of the industrial sugar produced by the new
refinery. Imperial will continue to market its branded and
small-package sugar supplied by LSR bulk sugar, and growers will
continue to produce Louisiana raw sugar. The refinery will also
market its product to industrial food and beverage manufacturers
and the brand retail market.
"Through this joint venture, the Louisiana sugar industry takes
a giant leap forward into the next generation," said Champagne.
"For over 200 years the sugar industry has been a vital part of the
Louisiana economy, but the last couple of decades have been very
challenging. By combining our farming expertise with the refining
and marketing expertise of Imperial and Cargill, our growers and
mill owners will benefit from the entire sugar production process
which takes the sugar from the field to the table. The future is
bright."
Louisiana Economic Development provided support to LSR during
its GO Zone bond application period. In November 2009, LSR issued
$100 million in GO Zone bonds for project development. LSR also
intends to use the state's Quality Jobs and Industrial Tax
Exemption programs.
About Cargill
Located in Minneapolis, Cargill is an international producer and
marketer of food, agricultural, financial and industrial products
and services. Founded in 1865, the privately held company employs
159,000 people in 68 countries.
About Imperial Sugar
Company
Imperial Sugar Company of Sugar Land, Tex., is one of the largest
processors and marketers of refined sugar in the United States to
food manufacturers, retail grocers and foodservice distributors.
The company markets products nationally under the Imperial®, Dixie
Crystals® and Holly® brands.
About Sugar Growers and Refiners
Inc.
Based in Breaux Bridge, La., Sugar Growers And Refiners Inc. is an
agricultural marketing cooperative comprised of eight Louisiana
sugar cane mills and approximately 700 in-state growers in the
marketing of raw sugar and molasses to customers.
