Cargill Joint Venture Opens $100 Million Oilseed Plant in Northern China

A joint venture formed between Cargill, and China’s New Hope Group and Hebei Bohai Investment Group has officially launched Hebei Jiahao Grain & Oil Co. Ltd – a new $100 million oilseed processing plant located in Northern China.
 

Located in the Bohai New Development Area – the largest economic development zone on China’s east coast, the 21,000 square-meter plant is expected to have annual processing capacity of 1.32 million tons that will help meet demand in the region for high quality food products, help enhance the development of the local economy, and further the integration of the Beijing-Tianjin-Hebei regions.
 

Concurrent with the announcement of the opening of the plant, a second announcement was made proclaiming the opening of Hebei Jihai Port Co Ltd (Jihai Port), which operates a bulk and general cargo birth with a capacity of 100,000 tons. This port will provide the transportation and storage requirements of the new plant for both domestic and overseas shipments.

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Karges-Faulconbridge, Inc. (KFI Engineers) acquires Wentz Associates, Inc.

Karges-Faulconbridge, Inc. (KFI), St. Paul, MN, a recognized industry leader in process and facility infrastructure design, announced today that it has reached an agreement to acquire Wentz Associates, an Edina, MN-based mechanical and electrical engineering firm.

Wentz Associates, Inc., Consulting Engineers, was founded in 1977 by Curtis Wentz. In December 2011, Thomas Wentz and Lawrence Justin purchased the firm. Wentz Associates provides mechanical and electrical engineering in a broad range of markets including, education, healthcare, commercial, municipal, industrial, hospitality, and data centers.

“KFI and Wentz share a common culture of design excellence,” said James A. Faulconbridge, P.E, KFI’s President. “We are very pleased that the Wentz team has chosen to join forces with us. We are excited to welcome such an experienced group, and to expand our capacity to serve key clients throughout the Midwest.”

“Wentz Associates is looking forward to joining the KFI team. This decision will broaden our reach, expand our resources and bring specialized expertise not found elsewhere in this market,” commented President Tom Wentz. “We are excited to grow our ability to serve our key clients while maintaining our long-standing commitment to quality.”

About KFI Engineers
KFI Engineers is a recognized industry leader in process and facility infrastructure design and performance. The firm serves clients in the United States, Canada and Central America and has capabilities not commonly found in traditional engineering firms, including commissioning, and the ability to drive large mechanical and electrical infrastructure projects. KFI was established in 1996 and has offices in Minnesota, Wisconsin, Iowa, and North Dakota. Additional information is available on at http://www.KFIengineers.com.

Recap: 85th TAMU/IOMSA Oil Mill Operators Short Course

The 85th annual Oil Mill Operators Short Course, hosted by Texas A&M University (TAMU) and IOMSA, returned to the TAMU campus in College Station for the first time in more than 20 years.

The one-and-a-half-day course featured educational presentations on topics such as smart manufacturing, maximizing oil recovery, flaking mill operation and maintenance, process safety, regulatory updates, RFID implementation, and new process technologies.

Course participants toured the Mary Kay O’Connor Process Safety Center, Process Engineering R&D Center, TEEX Fire School, and Kyle Field.

For more information on upcoming TAMU short courses, go to http://foodprotein.tamu.edu/ .

For more on the 85th Oil Mill Operators Short Course, look for the upcoming May/June issue of Oil Mill Gazetteer.

Bunge Acquires German Edible Oils Supplier

Bunge has agreed to acquire Westfälische Lebensmittelwerke Lindemann GmbH & Co. KG, Lindemann, Germany, a family-owned supplier of fats and oils to both industrial and artisanal bakery customers.

Launched in 1902 in Bünde, East Westphalia, Lindemann has grown to become one of the leaders in the European edible oil space, and will help Bunge expand and balance its business to business oil and fat business through the addition of a wider and higher value line of products that will better meet consumer demand.  Further, together with the recent acquisition, Walter Rau Neusser, Lindemann will help strengthen Bunge’s position in Northwestern Europe.

Bunge has been very active in the European market in recent months. On March 1, the company finalized the acquisition of Cargill’s soybean and rapeseed crushing and oil refining business along with its discharging operations at the port of Amsterdam, Netherlands, and the acquisition of Cargill’s soybean and rapeseed crushing facility in Brest, France.

The company also created an ocean freight joint venture through its wholly owned subsidiary, Koninklijke Bunge B.V. with Bahri Dry Bulk Co. for the express purpose of creating an ocean freight operation for dry bulk transportation to and from Middle Eastern destinations.

Ladies Historical Tour at the 2017 IOMSA Convention

The Ladies Historical Tour during the 2017 IOMSA Convention will take place Monday, June 26, from 2:00-5:00 p.m.

The tour will visit Moody Mansion and Bishop’s Palace in Galveston.moody-mansion

Moody Mansion, the 28,000 square-foot, four-story structure was completed in 1895. Today, guests visit 20 rooms on a tour that depicts the home life of a powerful Texas family. The Moodys established one of the great American financial empires. Based on cotton, it grew to include banking, ranching, insurance, and hotels.

W.L Moody Jr. bought the home from the heirs of the original owners soon after the great hurricane of 1900. Mr. and Mrs. Moody and their four children celebrated the first of more than eighty Christmas seasons in the house in December of that year. The house remained home for Moody family members until 1986. Today, its rooms are filled with the furnishings and personal effects of the family.

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Bishop’s Palace (a.k.a. Gresham House) is a contributing building in the East End Historic District, a National Historic Landmark. The house is listed in the National Register of Historic Places at the national level of significance in the area of architecture. Architectural historians list the Bishop’s Palace (Gresham House) as one of the most significant of Victorian residences in the country.

To view the full schedule for the 2017 IOMSA Convention, click here.

To register for or sponsor the convention, click here.

 

Kris Knudson Joins Crown Iron Works

Kris Knudson has been named vice president-Global Liquid Products segment leader at Crown Iron Works, Roseville, MN, a global supplier of oilseed processing technology, engineering, equipment and plants for preparation, extraction, refining, biodiesel, oleochemical, and specialty processing.

Knudson comes to the company from Cargill Inc. with 19 years of extensive experience in their Oils & Shortenings segment, including management roles in engineering, plant operations and food ingredient sales.

Prior to Cargill, he received a bachelor’s degree in chemical engineering
from Montana State University.

“We are excited to announce the hiring of a strong leader with a proven
track record in the vegetable oils industry,” said Bill Antilla, Crown Companies
Business Unit Leader.

“Kris’ background is an excellent fit into our newly formed role. Furthermore, I have witnessed his leadership approach, focus on being a customer solutions provider, commitment to developing his team; coupled with a tireless drive for success, that fits perfectly with our strategic direction.”

Knudson will focus on growing Crown’s global liquid products business, which
includes refining, biodiesel, glycerin refining and fatty acid processing with key
responsibilities that encompass all aspects of sales, marketing, engineering,
technology, strategy, and business development.

The position serves on the Crown Global Leadership Team that sets the company’s strategic direction and is a newly formed role focusing on global growth and expansion for their liquids
product lines.

Minnesota Soybean Processors to Build Soybean Processing Plant/Biodiesel Refinery in Spiritwood, ND

North Dakota Gov. Doug Burgum and leaders of Minnesota Soybean Processors (MnSP) and its subsidiary, North Dakota Soybean Processors (NDSP), in early February announced MnSP is taking steps toward construction of a $240 million soybean processing plant – the first of its Microsoft Word - Blank Credit Application.dockind in North Dakota – at Spiritwood, N.D.

 

The plant would be an integrated soybean crush facility and refinery, crushing 125,000 bushels of soybeans per day. It would produce soybean meal, refined, bleached and deodorized soybean oil, and biodiesel.

MnSP, a membership cooperative that owns and operates a soybean crush facility and biodiesel operation in Brewster, MN, has selected a site on 150 acres near Spiritwood. The coop would move forward with construction following further due diligence, necessary approvals and a successful engineering study.

By selecting the Spiritwood site, MnSP is able to conduct a preliminary front-end engineering and design study, which will be used to determine feasibility of construction. MnSP is working with the North Dakota Agricultural Products Utilization Commission to complete the construction feasibility study.

“The potential for this type of value-added project is great news for our farmers and the entire state of North Dakota,” Burgum said. “The NDSP plant will create value in the local community and beyond by creating 55 to 60 full-time jobs, supporting local service companies, vendors and suppliers and supporting the soybean price paid to local farmers.”

Gov. Burgum, MnSP Board President Bruce Hill and MnSP General Manager Scott Austin made the announcement during the annual Northern Soybean Expo and Trade Show in Fargo, joined by North Dakota Agriculture Commissioner Doug Goehring. “Our preliminary market analysis shows there are markets this facility would serve that would complement our current efforts at the Brewster facility to reach both global and domestic markets for meal and oil,” Austin said.

“We also believe that the biodiesel from this plant would serve both domestic and international markets.”

The NDSP plant would annually produce 900,000 tons of soybean meal, which is usually used as livestock feed for poultry and swine but can also be used for cattle, and 490 million pounds of oil. Half of the oil will be used to produce biodiesel, while the other half will be food-grade soybean oil.

The plant would utilize steam from the nearby Spiritwood Station, a coal-fired power plant operated by Great River Energy. MnSP has been working with the Jamestown/Stutsman Development Corp. and meeting with the appropriate state agencies, including the Department of Commerce, Office of State Tax Commissioner and Bank of North Dakota.

 

USB: Meeting Animal Needs Drives Meal Demand

Frankfort, Indiana, soybean farmer and USB director Mike Beard admits that for years hisusb_main_logo1-1
focus has been on soybean yield and crop marketing, believing that to be the path to profitability. Lower prices have made him question that simplistic view of crop economics.

“My soybeans ultimately feed animals all over the world,” Beard says. “While they are the best source for protein for many species, it may be possible through processing and/or composition manipulation to better meet the nutritional needs of the animals we nourish. From this standpoint, I need to know what compositional values exist in the soybeans I produce, and I need to recognize the desires of the marketplace to feed the world’s meat animals.”

Demand for soybean oil and meal are the critical factors determining market value for soybeans. Both components are important, but when it comes to providing value to farmers, meal is the engine that drives profitability.

Although the market price per pound for soybean oil is typically higher than the price per pound of meal, the comparison doesn’t mean oil contributes more value per bushel of soybeans. There is about four times more meal than oil in a bushel of soybeans.

“Until oil delivers four times more value per pound than meal, the meal will provide more value per bushel,” says Nick Bajjalie, president of Integrative Nutrition in Decatur, Illinois. “While oil is typically higher on a per pound basis, when you look at their contributions on a per bushel of soybeans basis, meal is usually between 65 to 70 percent of the total product value.”

Bruce Weber, director of soybean product line grain marketing for CHS Inc., says comparatively, soybean oil is more stable long-term than meal. Oil can be easily stored for extended periods and pulled into the product pipeline when the market demands. Meal tends to move through the value chain more quickly.
“The need for both oil and meal makes processing plants run, depending upon what the market wants at the time,” Weber says. “Meal is more important to the price structure and the impacts of supply and demand are much closer.”

Weber says soybeans are highly valued as a meal crop. Oil uses are important to the overall product value, but buyers have more choices in the market if they’re looking for oil. Soybean meal is a different story.

“Soybean meal is still what drives profitability for processing plants and farmers,” Weber adds.

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Soybean Plant Approved by St. Lawrence County (NY) Planning Board

Plans to construct a $16 million soybean processing facility in the village of Massena, NY moved a step forward on Jan. 16.

The St. Lawrence County Planning Board voted to support the project, provided the developer meets several conditions.

Conditions include constructing a solid fence to separate the facility from two neighboring homes to reduce the impact of noise and light generated by truck traffic and operation of the plant.

County planning staff also made recommendations related to noise at the facility, which is expected to operate 24 hours a day. Recommendations also were made related to structure height, lighting and additional permits that are required.

Kenneth D. Jahre, a principal in St. Lawrence Soyway Co. LLC who resides in New York City, said Friday the firm is seeking some outside funding to help finance the $16 million project.

“I’m confident it’s going to happen,” Mr. Jahre said. “The process is in motion.”

He said the company is still working with an investment banker to secure enough funding for the project.

“It’s just a waiting game now,” he said.

St. Lawrence Soyway plans to construct a 40,000-square-foot processing facility that would crush soybeans into high-protein soy meal used primarily to feed dairy herds. It also can be used to feed hogs and poultry.

The plant would be constructed at the former village Department of Public Works site at 5933 Route 11. Last year, the Massena Village Board voted to rezone the site to a planned industrial district to accommodate the project.

The county’s recommendations will be returned to the Massena Village Planning Board, which is scheduled to discuss the project later this month.

Bunge Announces Plan to Increase Soybean Processing in Eastern Corn Belt

Bunge North America, the North American operating arm of Bunge Limited (NYSE: BG), announced on Jan. 9 it plans to take steps to improve the productivity of its leading soybean processing footprint in the Eastern United States.

The plan includes building Bunge’s first new processing plant in the U.S. in fifteen years. Locations in Ohio and Indiana are under final consideration for the new facility.

“As we evaluate the long-term demand for soy products, we see the need to improve our asset footprint in the Eastern U.S., a key market,” said Tim Gallagher, executive vice president, Oilseed Value Chain, Bunge North America.

“A state-of-the-art facility in the Eastern Corn Belt that incorporates the latest productivity, safety and sustainability features combined with an increase in overall efficiency of our existing footprint will ensure Bunge can serve growing demand in the Southeastern U.S. feed and export markets.”

Once site selection is complete, Bunge will have to obtain necessary approvals to move forward with the project which would be expected to go online by the end of 2019.