Imperial in Discussions to Join Louisiana Sugar Joint Venture with Cargill and SUGAR
LSR is a 50-50 joint venture between Minneapolis-based Cargill and Sugar Growers & Refiners. The discussions contemplate Imperial contributing its Gramercy, La., sugar refinery to the joint venture in exchange for a one-third interest in the JV.
16/10/08 Imperial Sugar Company announced that it has entered into preliminary discussions with Louisiana Sugar Refinery, LLC (LSR) on a possible investment in LSR by Imperial.
LSR is a 50-50 joint venture between Minneapolis-based Cargill and Sugar Growers & Refiners of Breaux Bridge, La. The discussions contemplate Imperial contributing its Gramercy, La., sugar refinery to the joint venture in exchange for a one-third interest in the JV. The parties are exploring the synergies of co-locating the new refinery adjacent to the existing Gramercy facility. Imperial’s Port Wentworth, Ga. refinery would not be part of the LSR venture.
“Construction adjacent to our existing refinery would allow LSR to take advantage of current infrastructure and operational support,” said John Sheptor, president of Imperial. “It would promote an orderly transition from the existing refinery to the new, state-of-the-art refinery while at the same time keeping the option of running the existing refinery longer if needed.”
Cargill Corn Milling President Alan Willits stated, “Bringing Imperial into the JV structure would provide benefits to all parties, including customers. The new venture would team the sugar cane growers and mills with Cargill’s Industrial sugar marketing business and with Imperial’s refining and retail sugar marketing business.”
Lonnie Champagne, CEO of SUGAR, stated, “Louisiana Growers have long desired to be integrated from cane field through raw mills and refineries into the market for refined sugar. Our cooperative of growers and mills would be able to provide our full supply of raw sugar to a cane mill partly owned by our cooperative and to benefit from the refining and marketing strength of Imperial Sugar and Cargill. The venture would ensure the viability of the sugar cane industry in Louisiana for future generations.”
