RPT-Biodiesel byproduct to become business venture-ADM

"Because of the construction of all our new biodiesel plants, we're accumulating a lot of glycerin so the world's glycerin market has been depressed. As a result we're building a polypropylene factory which is used in a number of different industrial applications," Andreas said.

ADM is the largest biodiesel producer in Germany and one of the leading producers in Europe. The company will also produce biodiesel in the United States, in a joint venture with cooperatives in Mexico, Missouri and at a plant in Velva, North Dakota.

ADM, the largest U.S. food processor, looks to expand its industrial product area from agricultural byproducts as its vehicle for growth, Andreas told reporters in Winnipeg while attending the Agricore United (AUlv.TO: Quote, Profile, Research) annual members meeting.

Polypropylene glycol can be made into products including windshield washer, he said.

Andreas could not say how much the project will cost but expected construction to begin in six months at a yet-to-be-determined location in the United States. One possible location is near ADM's headquarters in Decatur, Illinois, Andreas said.

He could not estimate the future plant's annual revenue since it was not expected to be operational until early 2008.

"We're looking for all new ways to use the ingredients that are made on farms. The new area of growth is clearly industrial-based products and energy-related products," Andreas said.

ADM uses agricultural products to process renewable fuels, industrial chemical alternatives, food and animal feed.

($1=$1.15 Canadian)