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Goalkeeper Daniels Midland (New York Stock Exchange: ADM) said on Friday that its previously planned joint ventures with LG Chem to make materials for plant-based products such as bioplastics will not go ahead, citing high costs.
“Since we originally announced our two joint ventures with LG “In 2022, construction costs have skyrocketed for lactic and polylactic acid,” said Chris Cuddy, president of ADM (ADM) Carbohydrate Solutions Business.
The two joint ventures are GreenWise Lactic, majority owned by ADM (ADM), and LG Chem Illinois Biochem, majority owned by LG Chem.
When announced two years ago, GreenWise Lactic was expected to produce up to 150,000 tons/year of high-purity corn-based lactic acid, and LG Chem Illinois Biochem was forecast to produce 75,000 tons/year of polylactic acid.
