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Archer Daniels Midland (NYSE:ADM) said Friday its previously planned joint ventures with LG Chem to make materials for plant-based products such as bioplastics will not move forward, citing high costs.
“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 (ADM) Carbohydrate Solutions business.
The two joint ventures are GreenWise Lactic, majority owned by ADM (ADM), and LG Chem Illinois Biochem, which is majority-owned by LG Chem.
When announced two years ago, GreenWise Lactic was expected to produce up to 150K tons/year of high-purity corn-based lactic acid, and LG Chem Illinois Biochem was forecast to produce 75K tons/year of polylactic acid.