Firm to buy Wabash County ethanol plant's product

Wabash Plain Dealer staff

The Economic Development Group of Wabash County has announced Noble Americas has agreed to buy the full production of the Wabash AgriProducts' ethanol processing plant for the next 10 years.

Noble Americas is a $2 billion company and a market maker for ethanol at the Chicago Board of Trade. It has also agreed to become an equity shareholder in Wabash AgriProducts, whose plant will be located in LaFontaine.

EDG has also announced its partnership with Wabash AgriProducts in securing an air quality permit.

The company hopes to have the permit in hand by July 7 with construction beginning the first part of August.

Conditional commitments for debt financing have already been obtained from institutional investors.

Grain purchases are to be made from local farmers and grain elevators supported by a backstop supply agreement with Nidera Inc. Nidera is a Dutch company headquartered in Chicago.

Commodity Specialists Co., a $900 million annual revenue company, is now under contract to buy the full production of distiller's grain.

"We anticipate that debt closing will occur no later than Aug. 1, and that construction activities will commence immediately thereafter," Bill Konyha, president and CEO of EDG, said. "The plant is expected to open by March 31, 2009."

Konyha added that the project will offer Wabash County "the best opportunity to capitalize agriculture and manufacturing, adding value to our crops through processing."