London-based Tate & Lyle says it will invest $65 million to upgrade its Lafayette operations. The project will also result in a small number of new jobs. The company announced plans last year to invest $90 million in the Tippecanoe County facility.
March 16, 2015
Lafayette, Ind. — Tate & Lyle (LSE: TATE), a global provider of ingredients and solutions to the food, beverage and other industries, announced plans today for a further expansion of its Lafayette operations, investing $65 million by 2016.
The London, UK-based company will install new equipment at its Lafayette South facility, significantly expanding production of its KRYSTAR Crystalline Fructose sweetener to meet growing demand in the Americas and Asia. In addition to the expansion, the company will also phase in environmental efficiencies as part of the investment. Tate & Lyle, which currently employs more than 500 Indiana associates, plans to add eight new positions to the local workforce.
“Today's announcement shows that when you build a business climate like ours in Indiana, companies will travel the world to do business here,” said Governor Mike Pence. “Meeting with executives at Tate & Lyle last summer in London, it was clear that their plans fit with what we're doing here in Indiana to promote business growth. With lower taxes keeping expenses down and our industrious workforce maintaining quality, international companies like Tate & Lyle find their advantage in Indiana.”
This announcement marks Tate & Lyle's second Indiana expansion within the last year. During his jobs and economic development mission to the UK last July, Pence joined executives from Tate & Lyle in London to discuss the company's plans to invest more than $90 million into its Lafayette Sagamore facility for a number of projects, including an increase of its specialty food starch production capacity.
“This expansion not only allows us to stay ahead of the global demand for crystalline fructose, but also gives us the opportunity and flexibility to continue to grow within the North American and emerging markets,” said Joan Braca, president of specialty food ingredients at Tate & Lyle. “We'd like to thank both the state of Indiana and the city of Lafayette for their ongoing support of projects like these and look forward to our continued relationship with them.”
Founded in the UK in the mid-19th century, Tate & Lyle produces a range of texturants, sweeteners, health and wellness products and industrial ingredients, many of which are made from corn, for customers around the world. The company's global network of more than 30 production and research facilities includes two manufacturing facilities in Lafayette, along with grain elevators in Francesville and Fowler, Indiana.
The Indiana Economic Development Corporation offered TLHUS, Inc. up to $250,000 in conditional tax credits based on the company's job creation plans. These tax credits are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives. The city of Lafayette approved additional tax abatement at the request of the Greater Lafayette Commerce.
“Tate & Lyle continues to be one of Lafayette's leading businesses,” said Lafayette Mayor Tony Roskwarski. “This latest investment and pledged job creation is one of many investments that the company has made here in their local plants. It is a testament that Lafayette is good place to do business. We appreciate their confidence and support of the Lafayette plant and our community.”
Out of all U.S. states, Indiana ranks sixth in the nation for investment from UK-based companies, with 29,000 Hoosiers employed by more than 80 UK firms like Tate & Lyle. The UK is Indiana's largest European investor and second largest globally.
About Tate & Lyle
Tate & Lyle is a global provider of ingredients and solutions to the food, beverage and other industries, with operations in over 30 locations worldwide.
Tate & Lyle operates through two global divisions, Speciality Food Ingredients and Bulk Ingredients, supported by our Innovation and Commercial Development and Global Operations groups. The Group's strategy is to become a leading global provider of Speciality Food Ingredients through a disciplined focus on growth, and by driving Bulk Ingredients for sustained cash generation to fuel this growth.
Speciality Food Ingredients consists of three platforms: Texturants, which includes speciality starches and stabilisers; Sweeteners, which comprises nutritive sweeteners and our range of no-calorie sweeteners including SPLENDA® Sucralose; and our Health and Wellness portfolio which includes speciality fibres and our salt-reduction offering. Additionally, our Food Systems business provides a wide variety of blended ingredient solutions.
Tate & Lyle Bulk Ingredients includes bulk sweeteners, industrial starches and fermentation products (primarily acidulants). Corn co-products from both divisions are primarily sold as animal feed.
Tate & Lyle is listed on the London Stock Exchange under the symbol TATE.L. American Depositary Receipts trade under TATYY. In the year to 31 March 2014, Tate & Lyle sales totalled ?3.1 billion. For more information, please visit http://www.tateandlyle.com.
SPLENDA is a trademark of McNeil Nutritionals, LLC.
Created in 2005 to replace the former Department of Commerce, the Indiana Economic Development Corporation is governed by a 12-member board chaired by Governor Mike Pence. Victor Smith serves as the Indiana Secretary of Commerce and Eric Doden is the president of the IEDC.
The IEDC oversees programs enacted by the General Assembly including tax credits, workforce training grants and public infrastructure assistance. All tax credits are performance-based. Therefore, companies must first invest in Indiana through job creation or capital investment before incentives are paid. A company who does not meet its full projections only receives a percentage of the incentives proportional to its actual investment. For more information about IEDC, visit www.iedc.in.gov.
Source: Indiana Economic Development Corp.