Construction of Imperial Sugar and Cargill Louisiana Sugar Refinery Set to Begin
In conjunction with the closing, the joint venture successfully completed a $145 million financing that will support the $100 million in tax exempt Gulf Opportunity (GO) Zone Bonds issued by the Parish of St. James, LA., and provide working capital financing.
24 Nov 2009 --- Imperial Sugar Company of Sugar Land, Texas, Sugar Growers and Refiners Inc. of Breaux Bridge, LA., and Minneapolis-based Cargill announced the completion of a joint venture agreement that will lead to the construction of a new sugar refinery in Gramercy, LA.
"Construction of the refinery will begin immediately," said Lonnie Champagne, chief executive officer of SUGAR. "We expect that the new facility will commence operation in the first half of 2011."
In conjunction with the closing, the joint venture successfully completed a $145 million financing that will support the $100 million in tax exempt Gulf Opportunity (GO) Zone Bonds issued by the Parish of St. James, LA., and provide working capital financing. GO Zone Bonds are part of a federally-backed and state-run program designed to support capital investments in local and regional economies in parts of the Gulf South that were impacted by Hurricanes Katrina and Rita in 2005.
"Having the new facility at the Gramercy site provided the joint venture with substantial cost savings from existing infrastructure and operational assets that will be utilized by the new facility," said John Sheptor, president and CEO of Imperial. "Louisiana Sugar Refining, LLC (LSR) will also have the flexibility of operating parts of the existing Gramercy refinery for a period of time during the transition to the new refinery once it is completed. Imperial's small bag packaging facility at Gramercy will be retained and operated by Imperial with sugar sourced from LSR under a long term agreement."
Imperial, SUGAR and Cargill each have a one-third interest in LSR, which will build and operate the largest sugar refinery in the United States adjacent to Imperial's existing Gramercy facility.
"The new facility will be good for the long-term viability of the sugar industry," said Alan Willits, president of Cargill Corn Milling." It links SUGAR's cooperative of growers and mills, Imperial's existing assets and infrastructure, and Cargill and Imperial's marketing capabilities."
The construction project will have about 500 contractor employees. When complete, the new refinery will have approximately 145 permanent employees.
