Flint Hills Resources, headquartered in Wichita, Kansas, announced last week an agreement with Platinum Ethanol to acquire Platinum's ethanol plant located near the town of Arthur, in western Iowa. The transaction is expected to close later this year, subject to customary closing conditions including regulatory approvals. The purchase price is not being disclosed.
This will be Flint Hills Resources' fifth ethanol plant in Iowa and sixth ethanol plant overall. The Arthur facility opened in 2008 and has an annual production capacity of 110 million gallons of ethanol. It also produces 300,000 pounds of distillers grains and approximately 23 million pounds of non-foodgrade corn oil each year. The plant employs about 50 people.
"The Platinum Ethanol plant employees, along with our general manager Nick Bowdish and plant manager Mike Messing have worked tirelessly to make Platinum Ethanol a leader in the dry mill ethanol industry in the U.S.," said Ron Fagen, the principal shareholder in Platinum Ethanol. "Flint Hills Resources shares our views regarding the strength and importance of our employees."
Flint Hills Resources plans to acquire this western Iowa facility, which will be the sixth ethanol plant the company will own
"The Arthur plant will be a strong addition to our biofuels business," said Brad Razook, chief executive officer and president of Flint Hills Resources. "This is a quality operation in one of the best corn-producing regions of the country and it's supported by a topnotch professional workforce. We look forward to welcoming the Arthur team to Flint Hills Resources."~~~PAGE_BREAK_HERE~~~
Flint Hills Resources' biofuels business currently includes five ethanol plants with a combined annual capacity of 550 million gallons, a biodiesel plant in Texas, and investments in biofuels technology and feedstock development. Flint Hills Resources is an indirect, wholly-owned subsidiary of Koch Industries, Inc., which is one of the largest private companies in the world.
* About Flint Hills Resources, LLC: Flint Hills Resources, LLC, through its subsidiaries, is a leading refining, biofuels and chemicals company. Its subsidiaries market products such as gasoline, diesel, jet fuel, ethanol, biodiesel, olefins, polymers and intermediate chemicals, as well as base oils and asphalt. Flint Hills Resources operates ethanol plants in Iowa at Fairbank, Iowa Falls, Menlo and Shell Rock and in Fairmont, Neb. The plants Flint Hills currently owns have a combined annual capacity of 550 million gallons of ethanol.
The Flint Hills refining business operates oil refineries in Alaska (North Pole), Minnesota (Rosemount) and Texas (Corpus Christi), with a combined crude oil processing capacity of nearly 670,000 barrels per day. The petrochemical business of Flint Hills includes production facilities in Illinois, Michigan and Texas. The asphalt business produces and markets product in the Midwest and Alaska. A subsidiary owns an interest in a lubricants base oil facility in Louisiana.
* About Platinum Ethanol, LLC: Platinum Ethanol, LLC is a 110MGY ethanol plant located in Arthur, Iowa. Now in its sixth year of operations, the company has added millions of dollars to the local economy by processing corn into feed and fuel, generating more than 50 jobs in a town of less than 250, and relying on regional businesses to supply both goods and services to its operations.