Global firms LG Chem and ADM have formed two joint ventures to make lactic acid and polylactic acid (PLA), a rapidly growing bioplastic.
Manufacturing facilities for the JVs will be in Decatur, Ill., officials with ADM in Chicago and with LG Chem in Seoul said in a news release.
The first JV, GreenWise Lactic, will make up to 330 million pounds of high-purity corn-based lactic acid annually. ADM will be majority owner of GreenWise, and will contribute fermentation capacity from its Decatur bioproducts facility.
The second JV, LG Chem Illinois Biochem, will be majority-owned by LG Chem. It would build on the firm's expertise in bioplastics to construct a facility that will use product from GreenWise Lactic to make about 165 million pounds of PLA per year. The projects are expected to create more than 125 jobs.
"Sustainability is one of the enduring global trends that is powering ADM's strategy and growth," CEO Juan Luciano said. He added the JVs will serve several markets, including pharmaceuticals and personal care, textiles and paper products.
LG Chem CEO Hak Cheol Shin said that the JVs are part of "a sustainable growth strategy that can directly contribute in solving environmental issues such as climate change and waste plastics."
LG Chem is the first South Korean company to build a PLA plant with integrated production capacities ranging from raw materials to the final product, he added.
Global demand for bioplastics and biopolymers is projected to grow from $10.7 billion in 2021 to $29.7 billion by 2026, representing annual growth of almost 23 percent.
The JVs hope to make final investment decisions around the Decatur projects next year. Pending final investment decisions and approvals, construction would be targeted to begin next year, with production starting in late 2025 or early 2026.
Both JVs are participating in Illinois' Economic Development for a Growing Economy (EDGE) program, which provides incentives to job creators who plan to make investments in the state.
LG Chem is a global supplier of plastics and petrochemicals that posted sales of $37.3 billion in 2021. ADM is a global agricultural products firm with 2021 sales of $85.2 billion.