Ethanol plant will add 40 jobs to Akron
By Dave Dreeszen Journal business editor | Posted: Saturday, March 04, 2006
Another ethanol plant is headed for Northwest Iowa.
Little Sioux Corn Processors, which currently produces the grain-based fuel additive at its plant near Marcus, Iowa, plans to build a 100-million-gallon facility near Akron. The $150 million project would bring 40 new jobs to the Plymouth County city of some 1,500.
"It's huge for our area," Kevin Eekhoff, president of the Akron Development Corp., said Friday. "This is like a Christmas present in March."
Little Sioux officials, who are currently evaluating specific sites along Iowa Highway 12, hope to begin construction in mid to late 2007, with production starting as early as late 2008.
Besides the site selection, the company stressed the project is contingent on factors that include receipt of government permits, signing of construction contracts and obtaining financing.
"There is no assurance that these contingenices can be satisfied," Little Sioux said in the announcement on its Web site.
Steve Roe, Little Sioux general manager, said Friday he is "reasonably confident" the project will proceed as planned. Investors in the Marcus-based company likely will have a major financial interest in the Akron project, he said. An equity drive also could be held at a later date to raise additional capital.
In addition to 100 million gallons of fuel-grade ethanol, the Akron plant would have the capacity to produce 320,000 tons of distiller grain annually. A byproduct of the ethanol production process, distiller grain is a high-protein feed used by livestock and dairy producers. The plant would buy 100,00 bushels of corn per day, or 38 million bushels per year.
The Marcus plant, which opened four years ago, also will have an annual capacity of 100 million gallons following the completion of a $40 million expansion project set to begin in August. The two Little Sioux plants would be among the largest in Siouxland, where the ethanol industry is growing at a dizzying pace.
The Akron plant would be surrounded by competitors. Just to the north is a plant in Hudson, S.D., and to the north and east plants operate in Sioux Center and Ashton, Iowa. To the south, a plant is under construction near Jackson, Neb., while another is planned for Sioux City in the Bridgeport industrial area.
Roe said a study of corn producers in the region "indicates there's ample supplies of corn in that area and up into South Dakota to provide the feed stock" Little Sioux would need for the Akron plant.
Kevin Eekhoff, president and CEO of First National Bank in Akron, said the Little Sioux City plant would create a new market for area corn farmers. In addition to the 40 permanent jobs the plant would create, the construction of the factory would give the community a big economic shot in the arm. An estimated 100 to 150 construction workers would be in town for 14 to 16 months, spending money in restaurants, convenience stores and other local businesses.
Journal business editor Dave Dreeszen can be reached at (712) 293-4211 or davedreeszen@siouxcityjournal.com
Little Sioux Corn Processors, which currently produces the grain-based fuel additive at its plant near Marcus, Iowa, plans to build a 100-million-gallon facility near Akron. The $150 million project would bring 40 new jobs to the Plymouth County city of some 1,500.
"It's huge for our area," Kevin Eekhoff, president of the Akron Development Corp., said Friday. "This is like a Christmas present in March."
Little Sioux officials, who are currently evaluating specific sites along Iowa Highway 12, hope to begin construction in mid to late 2007, with production starting as early as late 2008.
Besides the site selection, the company stressed the project is contingent on factors that include receipt of government permits, signing of construction contracts and obtaining financing.
"There is no assurance that these contingenices can be satisfied," Little Sioux said in the announcement on its Web site.
Steve Roe, Little Sioux general manager, said Friday he is "reasonably confident" the project will proceed as planned. Investors in the Marcus-based company likely will have a major financial interest in the Akron project, he said. An equity drive also could be held at a later date to raise additional capital.
In addition to 100 million gallons of fuel-grade ethanol, the Akron plant would have the capacity to produce 320,000 tons of distiller grain annually. A byproduct of the ethanol production process, distiller grain is a high-protein feed used by livestock and dairy producers. The plant would buy 100,00 bushels of corn per day, or 38 million bushels per year.
The Marcus plant, which opened four years ago, also will have an annual capacity of 100 million gallons following the completion of a $40 million expansion project set to begin in August. The two Little Sioux plants would be among the largest in Siouxland, where the ethanol industry is growing at a dizzying pace.
The Akron plant would be surrounded by competitors. Just to the north is a plant in Hudson, S.D., and to the north and east plants operate in Sioux Center and Ashton, Iowa. To the south, a plant is under construction near Jackson, Neb., while another is planned for Sioux City in the Bridgeport industrial area.
Roe said a study of corn producers in the region "indicates there's ample supplies of corn in that area and up into South Dakota to provide the feed stock" Little Sioux would need for the Akron plant.
Kevin Eekhoff, president and CEO of First National Bank in Akron, said the Little Sioux City plant would create a new market for area corn farmers. In addition to the 40 permanent jobs the plant would create, the construction of the factory would give the community a big economic shot in the arm. An estimated 100 to 150 construction workers would be in town for 14 to 16 months, spending money in restaurants, convenience stores and other local businesses.
Journal business editor Dave Dreeszen can be reached at (712) 293-4211 or davedreeszen@siouxcityjournal.com
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