A Massachusetts company’s north Louisiana biochemical plant is the first to receive funding from the U.S. Department of Agriculture’s Business and Industry Rural Development Loan Guarantee program.
Quincy, Mass.-based Myriant Corp. closed a $25 million private bond placement that will be used to help build a bio-succinic acid plant in Lake Providence. Succinic acid is traditionally made from petroleum and is used in making polymers, fibers, detergents and flavors, among other items. The global market for the acid is currently estimated at around $7.5 billion a year.
Myriant’s Lake Providence plant will produce 30 million pounds of bio-succinic acid a year. Construction is under way and the plant is expected to begin production in the first quarter of 2013. The plant is the first and only bio-succinic plant in the country.
Myriant has multi-year, customer contracts in place, and the company is already planning a 140 million-pound expansion.
The Agriculture Department Loan Guarantee Program was designed to improve the economic and environmental climate in rural communities by supporting the development of local industry. The Lake Providence plant is expected to create approximately 40-50 direct jobs, around 250 construction jobs and an estimated 300 indirect jobs.