LG Chem and ADM Launch Joint Ventures, Announce Intended Location for U.S. Production of Lactic Acid and Polylactic Acid Production - Seite 2

Global demand for lactic acid – which is used broadly in food, feed and cosmetics in addition to industrials like bioplastics – was valued at approximately USD 2.9 billion in 2021, with an expected annual growth rate of 8%. Global demand for bioplastics and biopolymers is projected to grow from USD 10.7 billion in 2021 to USD 29.7 billion by 2026, representing annual growth of 22.7%.

The joint ventures, which are subject to required regulatory approvals, hope to make final investment decisions around the Decatur projects in 2023. Pending final investment decisions and approvals, construction would be targeted to begin in 2023, and production in late 2025 or early 2026, with the two joint ventures supporting more than 125 jobs in the Decatur region.

Both ventures are participating in the State of Illinois’ Economic Development for a Growing Economy (EDGE) program, which provides incentives to job creators who plan to make investments in Illinois.

“I am thrilled that LG Chem and ADM have chosen Decatur as home for their joint ventures,” said Illinois Governor JB Pritzker. “Our state’s talented workforce coupled with our mission of sustainability make Illinois the best place for these lactic and polylactic acid production facilities. To LG Chem and ADM: thank you for your commitment to our state. It is innovative, plant-based solutions like these that will help us tackle the climate crisis head on.”

"When I led a congressional delegation to South Korea earlier this year, I met with the CEO of LG Chem, Hak Cheol Shin, and shared how Illinois is uniquely positioned for greater investment as a growing hub for innovation, manufacturing and technology. I'm proud my advocacy helped bring this important investment to Illinois," said U.S. Senator Tammy Duckworth. “LG Chem recognizes what I’ve long known: Illinois is a great place to do business. Building on ADM's long history in Illinois, I’m glad the leaders at ADM and LG Chem made this decision to help our state lead the transition to a clean energy economy and create good-paying jobs right here so we can help build a better, more sustainable future for communities throughout Illinois. I will continue to spread the message across the country and around the world that entrepreneurs and innovative companies should call Illinois home.”