April 2006

Construction to begin on Clymers ethanol plant

Maumee, OH— The Andersons, Inc. announced February 23 that it will immediately begin construction on the largest, dry-mill ethanol plant east of the Mississippi in Clymers, Indiana, having completed funding arrangements and obtained environmental permits.

The ethanol plant will be owned and operated by The Andersons Clymers Ethanol LLC. The Andersons, Inc. will be the manager, and together with seven other investors, co-owner of The Andersons Clymers Ethanol LLC.

“This is a major project for the company,” described president and CEO Mike Anderson. “The demand for ethanol is expected to increase from less than two billion gallons in 2002 to over seven billion gallons by 2012. The Clymers ethanol plant will be strategically located next to our existing grain facility with access to an abundant amount of corn, utilities and transportation infrastructure.”

With completion expected in the first quarter of 2007, the Clymers plant will produce 110 million gallons of ethanol each year, as well as 350,000 tons of distillers dried grains, an animal feed ingredient.

“We expect this plant will process 40 million bushels of corn each year, primarily sourced from Cass and surrounding counties, significantly benefiting area farmers and agribusinesses,” says Neill McKinstray, vice president and general manager - Ethanol, a business unit of the Grain Division. “In addition to creating between 40 and 50 new jobs, the construction project is expected to bring significant dollars into the community as well.”

The Indiana Economic Development Corporation (IEDC), in partnership with Cass County, worked to provide an incentive package that helped secure the ethanol plant. The Andersons operates 13 agriculture related business units in 10 Indiana counties, including four grain terminals handling in excess of 50 million bushels of grain annually.

The Andersons also has a 44 percent equity stake in The Andersons Albion Ethanol LLC in Albion, Michigan and an 8 percent equity position in Iroquois Bio- Energy Company, LLC in Rensselaer, Indiana. Both of these plants are under construction and are expected to begin producing ethanol in 2006. The Albion and Rensselaer plants will have 55 million gallons and 40 million gallons of ethanol production capacity, respectively.

 


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