ADM & LG Chem Nix Acid Production PartnershipADM & LG Chem Nix Acid Production Partnership

ADM and LG Chem have stated that their previously announced projects for the production of lactic and polylactic acid will not move forward.

“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 Carbohydrate Solutions business. “We looked at a variety of options, but when the time came to make final investment decisions, it had become clear that these projects no longer represented a prudent use of our investors’ capital that would meet our returns objectives."

"ADM remains committed to leading in the decarbonization of the industries in which we participate, and we continue to expand our biosolutions portfolio to meet growing demand for sustainably sourced solutions. We also are continuing to advance multiple projects and facilities in support of innovation, jobs, and economic growth for the Decatur region, the home of our North American headquarters and our largest manufacturing and employee location," he said.

The two joint ventures are GreenWise Lactic, of which ADM is a majority owner, and LG Chem Illinois Biochem, which is majority-owned by LG Chem.

A statement on ADM's website says that the company is investing significantly in its Decatur operations and facilities and are bringing world-class, innovative new technology and partners to continue growing its business and community. ADM is advancing new projects and facilities to bring new jobs, sustainable products, and economic growth to the Decatur region.