Countrymark Cooperative is planning a $20 million expansion to boost production at its Mount Vernon, Ind., oil refinery - the only domestically-owned facility of its kind in Indiana.
When it is completed next year, the expansion is expected to increase refining capacity at the Posey County operation by 45 million gallons - or by 12 percent - annually.
Countrymark Chief Executive Charlie Smith announced the plans during the company's annual meeting Wednesday in Indianapolis.
Countrymark will also invest in improvements throughout its distribution system this year, Smith said.
"Countrymark will upgrade facilities and control systems to assure safe operating conditions for employees and the communities where we do business," Smith said in a statement. "We will also invest in an ongoing, aggressive, voluntary, preventive maintenance initiative to assess, inspect and upgrade the company's underground pipeline systems."
Countrymark spokesman Tim McKim said the refinery expansion won't mean any new jobs immediately, but he said the operation has hired about 25 additional workers over the past two years to push the plant's total employment to 140.
"That's a significant number for an operation of that size," he said. "It's more about job preservation and making sure it remains competitive."
One group sure to benefit, McKim said, will be the Illinois Basin's crude oil producers, who will experience higher demand for their product thanks to the refinery's expansion.
The facility's upgrade comes as several refineries across the country are dealing with near- or full-capacity production spurred by increased demand for gasoline. Earlier this year, experts cited an outage at Indiana's other refinery - BP's Whiting plant - as one factor driving an earlier-than-usual gasoline price spike in the Midwest.
Countrymark said demand for fuel nationwide has risen 2 percent this year, putting further upward pressure on prices.
The company also announced Wednesday it will continue to push for development of alternative fuels. Last year, the company purchased 6 million gallons of ethanol and 5 million gallons of soy diesel that were blended into the company's fuel products. About 80 percent of the diesel Countrymark distributes was soy-based.
"Substantial time and money has been and will continue to be invested in alternative fuels, both soy biodiesel and ethanol," Smith said. "The Countrymark petroleum system has proactively provided marketplace education and training, and has invested in state-of-the-art distribution facilities and equipment to seamlessly distribute alternative fuels. We are recognized nationally for our activities."
In addition to the Mount Vernon refinery, Countrymark operates fuel terminals in Mount Vernon, Switz City, Ind., Jolietville, Ind., and Peru, Ind. The company sells fuel through 91 stations under "Energy Plus 24" and other brand names in Indiana, Illinois, Michigan and Ohio.