The Messenger

Tate & Lyle To Build $260 Million Corn Wet Mill in Fort Dodge

Ultimate capacity will be 300,000 bushels per day
By BILL SHEA Messenger staff writer

$260 million wet corn milling plant described as the largest single investment in Webster County will be built west of Fort Dodge, executives and local officials announced Thursday.

The plant, owned by the British company Tate & Lyle, will make ethanol and starch for use in paper products.

It will employ 110 people with average wages of $23.54 an hour, including benefits.

Construction of the plant depends on numerous regulatory approvals and the OK of the London-based company’s board of directors. But company representatives and local leaders expressed confidence that the work could begin this year.

‘‘Tate & Lyle is certainly excited about the plans we announced today and we’re very much looking forward to becoming part of the Fort Dodge community,’’ said Chris Olsen, the company’s director of community and government relations.

‘‘We want to add value to the local community in any number of ways, not just economically,’’ Olsen added.

In a statement issued by the company, Tate & Lyle CEO Iain Ferguson said, ‘‘This investment will double our ethanol capacity, producing environmental and energy saving benefits in the U.S. and reducing American oil dependence. This new facility will create jobs and expand our U.S. strategic presence into the western Corn Belt, increasing demand for locally sourced crops.’’

For local officials, welcoming Tate & Lyle caps about a decade of work that began when the community was courting A.E. Staley Manufacturing, which was owned by the larger company. Tate & Lyle stopped using the A.E. Staley name within the last couple of years to avoid confusing its customers.

‘‘A project of this magnitude will have a very positive, far reaching economic impact on our region,’’ said Fort Dodge Mayor Terry Lutz. ‘‘We are eager and grateful for the opportunities this will create for the people in northwest Iowa.’’

Dennis Plautz, the city’s director of business affairs and community growth, described the plant as the ‘‘largest single investment we’ve ever had.’’

Webster County Supervisor Greg Nolting said the plant will have a ‘‘double fold’’ impact on the local economy in the forms of high wages and higher corn prices for farmers.

Construction and purchases of supplies and services will add to the project’s impact, according to Plautz.

‘‘This is a message that says loudly and clearly that Webster County is open for business,’’ said Duane Amhof, the chairman of the board of Webster County Development.

Fort Dodge City Councilman Don Wilson said he thinks the plant’s presence may boost the population of smaller cities like Barnum, Manson, Pocahontas and Rockwell City.

The plant will be in the vicinity of Iowa Highway 7 and Hayes Avenue, southwest of the VeraSun Fort Dodge site.

Plautz estimated that building the plant will create 400 construction jobs over 14 months.

When the first phase of construction is done, the plant will consume 150,000 bushels of corn daily. Upon final completion, 300,000 bushels will be used every day.

The plant’s work force will include management, production, laboratory, quality control and maintenance personnel.

Olsen said local corn supplies, access to two railroads (Canadian National and Union Pacific), a good labor force and cooperation from ‘‘topnotch’’ local and state officials attracted the company to Webster County.

He acknowledged that plans for the facility have been around for a long time. He said a combination of market conditions, new technology and capacity issues at other Tate & Lyle plants made the project possible at this time.

The original A.E. Staley plan called for building a wet corn milling plant to make fructose sweetener. The plant will not make that sweetener, according to the plan announced Thursday.

The company is requesting a number of incentives from the state, including income tax credits, job training assistance, and a refund of Iowa sales taxes paid during construction. The Iowa Economic Development Board is set to consider granting those incentives when it meets next month.

The Webster County government will likely provide some tax incentives and road improvements. Nolting said negotiations with the company are ongoing.

Fort Dodge will provide sanitary sewer service to the plant. Plautz said the city has already applied for a $2 million federal grant to pay for extending sewer lines to the site. Some upgrades to the wastewater treatment plant are also anticipated. Plautz said those improvements will be financed with sewer bills paid by Tate & Lyle. He said homeowners in Fort Dodge won’t face higher monthly bills to pay for that work.