ADM, LG Chem cancel polylactic acid plans

The South Korean chemical maker LG Chem and agricultural giant ADM will not go ahead with their planned joint ventures to make lactic acid and polylactic acid (PLA) at ADM’s site in Decatur, Illinois. The companies originally unveiled their plans in 2021. And a year later, they announced that an ADM-controlled joint venture would operate a lactic acid plant with 150,000 metric tons (t) of annual capacity, while an LG majority-owned partnership would operate a 75,000 t PLA plant. They were targeting a 2026 start. In a statement, Chris Cuddy, president of ADM’s Carbohydrate Solutions business, says the construction costs have “skyrocketed” since the last announcement and the investment is no longer a “prudent use of our investors’ capital.”