ADM and LG Chem Announce Cancellation of Lactic Acid and Polylactic Acid Projects

ADM and LG Chem have jointly announced the cancellation of their planned projects for lactic and polylactic acid production. The initiatives involved two joint ventures: GreenWise Lactic, primarily owned by ADM, and LG Chem Illinois Biochem, predominantly owned by LG Chem. This decision marks a strategic shift in both companies' plans, reflecting evolving market conditions and strategic priorities. While the projects aimed to leverage ADM's expertise in agricultural processing and LG Chem's leadership in chemical manufacturing, changes in economic and market dynamics have led to the decision not to proceed with these ventures at this time.

Chris Cuddy, president of ADM’s Carbohydrate Solutions business, explained the decision regarding the joint ventures with LG Chem for lactic and polylactic acid, originally announced in 2022, amidst skyrocketing construction costs. He noted that despite evaluating various options, the final investment decisions showed that these projects no longer aligned with prudent use of investor capital to meet return objectives. Cuddy reaffirmed ADM's commitment to leading decarbonization efforts within their industries, expanding their biosolutions portfolio to meet the rising demand for sustainable solutions. He emphasized ADM's ongoing commitment to advancing innovation, creating jobs, and fostering economic growth in Decatur, where their North American headquarters and largest manufacturing site are located.

The cancellation of ADM and LG Chem's lactic and polylactic acid production projects underscores the challenges and dynamics inherent in joint ventures, particularly in the evolving landscape of sustainable chemicals. It reflects the complexities of aligning strategic priorities, market conditions, and economic viability in large-scale industrial initiatives. Both companies likely considered factors such as technological readiness, market demand shifts, and financial considerations in their decision-making process, highlighting the importance of flexibility and adaptability in pursuing sustainable innovation within the chemical sector.

ADM stands at the forefront of global agriculture as a vital supply chain manager and processor, dedicated to ensuring food security by seamlessly connecting local demands with unparalleled global capabilities. Their commitment extends beyond mere logistics; we are champions of human and animal nutrition, offering an extensive array of natural ingredients and solutions that set industry standards. From enhancing health and well-being to pioneering innovative consumer and industrial solutions, ADM leads the charge towards a future defined by sustainability and progress.

As a trailblazer in sustainability, ADM drives transformative change across entire value chains, working tirelessly to decarbonize the diverse industries they serve. Their initiatives span the globe, leveraging innovation and expertise to address critical global needs while nurturing the quality of life and promoting a healthier planet for future generations. ADM’s unwavering dedication to harnessing the power of nature underscores their mission to enrich lives, elevate standards, and forge a path towards a sustainable and prosperous future.