LINCOLN, Neb. (DTN) -- Kansas farmers will have access to the state's third soybean-crushing facility starting in 2024, as Kansas City, Missouri-based Bartlett announced on Tuesday plans to begin construction on a plant in Montgomery County.
Currently there are just two soybean crushing plants in Kansas, including one operated by Cargill Inc., in Wichita and a second by Bunge North America Inc., in Emporia.
Bartlett announced in a news release it would build a plant with an annual handling capacity of about 38.5 million bushels (mb), with plans to launch construction in 2022. The company said the $325 million plant would produce soybean meal and refined soybean oil, feedstock used in producing renewable fuels, food products and animal feeds.
The company said the plant was expected to create about 50 permanent jobs and process about 110,000 bushels per day.
The board of county commissioners in Montgomery County recently granted approval for the company to receive county-issued industrial revenue bonds to help fund the project. In addition, the company is expected to receive tax credits through the state's High-Performance Incentive Program.
The company said the plant will have "easy access" to highways 160, 166, 169 and 400, and would "encourage rail improvements benefitting southeast Kansas."
The South Kansas and Oklahoma Railroad will provide rail services for the facility by connecting the plant to a network of Class 1 carriers, according to the news release.
Bartlett President Bob Knief said in a press statement the project will be a boost for farmers and for green transportation infrastructure in the state.
"This is an important milestone for our project, enabling infrastructure investment in Kansas that accelerates the nation's transition to a cleaner, greener and more sustainable transportation system," he said.
"We appreciate the county commissioners' recognition of the long-term benefits this plant will provide by expanding markets for area producers and agribusinesses and driving economic growth in Montgomery County and southeast Kansas. With strong demand for soybean products, we look forward to our crushing facility supporting farming families in the Midwest and playing a vital role in multiple supply chains including renewable diesel production."
Kansas Democratic Gov. Laura Kelly said the new plant will be a good addition to the state's overall economy.
"Agriculture-based and renewable-energy businesses are major economic drivers in Kansas, and I am extremely pleased to see Bartlett recognize just how ideal this location is for the future of their operations," she said in a statement.
"Powered by Kansas' outstanding infrastructure and talented workforce, I'm confident Bartlett's new project will be a tremendous success and have a significant economic impact on the region and our state as a whole."
Bartlett is part of the Savage Company based in Salt Lake City, Utah. Savage owns a series of agriculture and energy industry infrastructure and supply chain companies across the world.
Savage recently completed construction on a commodity rail port near Stockton, California, focused on the distribution of renewable fuels into California.
Bartlett joined Savage in 2018, according to the news release.
Bartlett supplies all classes of wheat, feed grains, food-grade corn, and soybeans to millers and processors, and produces a full line of commercial patent flours and animal feeds. The company operates grain facilities in Iowa, Kansas and Missouri.
Todd Neeley can be reached at firstname.lastname@example.org
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