Cargill Joint Venture to Invest $20M in IN Facility
Cargill AgHorizons, a business unit of Wayzata-based Cargill, Inc., on Friday announced the launch of a new joint venture that will own and operate its grain elevator in Dana, Indiana.
Overland Park, Kansas-based Agrex, Inc., a wholly owned subsidiary of Mitsubishi Corporation, is joining Cargill to create the 50-50 joint venture, which is called AC Grain, LLC.
Cargill's Dana facility supplies corn to processors in the southeastern United States and also is experiencing an uptick in demand from ethanol plants in Indiana and Ohio, the company said. It also sends soybeans to Cargill's oilseed processing facilities in the Southeast.
AC Grain will make improvements to Cargill's Dana facility that could eventually more than triple the warehouse space and unload capacity for corn, soybeans, and wheat, Cargill said. Rail track space, rail load capacity, and grain drying capacity will also be significantly increased. Cargill said that total investments in the project are expected to exceed $20 million.
“For our farmer customers, these upgrades will reduce unloading times, provide more storage space, and expand the marketplaces for the delivery of grain,” Doug Childers, regional leader of Cargill's farm services group, said in a statement. “For our customers who process corn and soybeans, we will strengthen our ability to take care of their needs.”
Cargill is Minnesota's largest private company based on revenue, which totaled $107.9 billion in the company's 2010 fiscal year.