Imperial may join Cargill in refinery venture

Imperial Sugar has begun discussions with Louisiana Sugar Refinery (LSR) to participate in the construction and operation of a new state-of-the-art refinery. LSR is a 50-50 joint venture between Cargill and Sugar Growers & Refiners (Sugar), a Louisiana cane sugar marketing cooperative.

The deal would include the contribution of Imperial’s Gramercy, Louisiana sugar refinery in exchange for a one-third interest in the venture. The parties are exploring the possibility of co-locating a new refinery adjacent to the existing Gramercy facility. Imperial’s refinery in Port Wentworth, Georgia, would not be part of the venture.
Imperial says the new refinery will take advantage of current infrastructure and operational support. Benefits would include utility, site infrastructure and personnel synergies by co-locating the refineries and reductions in the cost of constructing and operating the new refinery. Imperial would retain the small bag packaging assets at Gramercy to supply its retail and foodservice business.
“We are exploring with LSR the benefits of a combined effort in this construction project among three industry leaders which builds upon our successful long-standing relationship with the sugar cane growers and mill owners who belong to Sugar,” said John Sheptor, president and CEO of Imperial Sugar.
“Sugar’s growing and milling experience along with Imperial’s and Cargill’s refinery and marketing expertise would result in a more efficient supply chain that integrates raw sugar supply, sugar processing and product distribution to new and existing customers.”

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