By Colin Kellaher


Agricultural giant Archer Daniels Midland and Korean chemical company LG Chem have pulled the plug on a pair of ventures aimed at meeting growing demand for plant-based products due to surging costs.

ADM on Friday said construction costs have "skyrocketed" since the companies announced the projects for the production of lactic and polylactic acid nearly two years ago.

The Chicago company said it has since looked at a variety of options for the planned ventures, but that the projects no longer represented a prudent use of capital.

ADM and LG Chem in August 2022 said the ventures would produce 150,000 tons of corn-based lactic acid and 75,000 tons of polylactic acid a year to meet growing demand for plant-based solutions, including eco-friendly bioplastics. The companies had planned to build new production facilities in Decatur, Ill.


Write to Colin Kellaher at colin.kellaher@wsj.com


(END) Dow Jones Newswires

07-12-24 0940ET