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. The Lake Providence plant is expected to create about 40-50 direct jobs, around 250 construction jobs and an estimated 300 indirect jobs.
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 beginning in 2013. Myriant has multi-year, customer contracts in place, and the company is already planning a 140 million-pound expansion.