Flint Hills Resources to acquire Georgia ethanol plant
Southwest Georgia Ethanol LLC
September 8, 2014
BY Erin Krueger
Flint Hills Resources LLC has announced plans to acquire Southwest Georgia Ethanol LLC’s 100 MMgy ethanol plant in Camilla, Georgia. Flint Hills Resources, a wholly-owned subsidiary of Koch Industries Inc., currently owns six ethanol plants with a combined capacity of 650 million gallons. Southwest Georgia Ethanol will be the company’s seventh ethanol plant, and the first located outside the Midwest. According to information released by Flint Hills Resources, the transaction is expected to close after customary closing conditions have been satisfied, including regulatory approvals. The purchase price of the facility has not been disclosed.
“The Camilla plant is a premier destination for corn in southwest Georgia,” said Brad Razook, CEO and president of Flint Hills Resources, in a statement. “The plant is well-positioned for success and is supported by a professional and dedicated workforce. We look forward to welcoming the Camilla team to Flint Hills Resources.”
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Southwest Georgia Ethanol’s plant first began operations in 2008. Prior to a 2011 bankruptcy reorganization, the facility was a wholly owned subsidiary of First United Ethanol LLC. A reorganization plan approved in late 2011 allowed the plant to emerge from Chapter 11 bankruptcy.
Flint Hills Resources first entered the ethanol industry in 2010, when it announced plans to acquire two 110 MMgy ethanol plants located in Menlo and Shell Rock, Iowa, from Hawkeye Renewables LLC. In 2011, the company acquired two additional Iowa plants from Hawkeye Renewables, including a 90 MMgy facility in Iowa Falls and 105 MMgy plant Fairbank. . In 2012, Flint Hills Resources acquired a 115 MMgy facility in Fairmont, Nebraska from Advanced BioEnergy LLC. l The following year, the company acquired its sixth ethanol plant, a 110 MMgy facility in Arthur, Iowa, previously owned by Platinum Ethanol.
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In addition to the ethanol plants, Flint Hills Resources’ grain processing business also owns a biodiesel plant in Nebraska and in investments in biofuels technology and feedstock development. The company’s refining business operates oil refineries in Minnesota and Texas with a combined crude oil processing capacity of more than 600,000 barrels per day. Flint Hills Resources also has a petrochemical operations.
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