The Andersons, Inc. ANDE announced expansion of the facility owned by The Andersons Albion Ethanol LLC, Albion, MI. This will double the facility's capacity and the company will able to capitalize on the favorable supply and demand situation for corn and ethanol in Michigan.
Managed and operated by Andersons, The Andersons Albion Ethanol LLC (“TAAE”) is co-owned by Marathon Petroleum Corporation MPC; while Andersons holds 53% of the outstanding units of TAAE. TAAE, a producer of ethanol, co-produces distillers dried grains ("DDG") and corn oil at its 55 million gallon-per-year ethanol production facility in Albion, MI.
Andersons operates the facility under a management contract and provides corn origination, ethanol, corn oil and DDG marketing and risk management services. The company is separately compensated for all such services except corn oil marketing. The company also leases its Albion, MI-based grain facility to TAAE.
The Albion facility, built by ICM, Inc. of Colwich in 2006. The facility has constructed along with the measure of future expansion. The Albion facility was built by ICM, Inc. of Colwich in 2006. The facility had been constructed with the scope of future expansion. ICM has been contracted for the project development, which will likely be completed by Apr 2017. Approximately 10 new full-time production positions will be added to the capacity.
During the third quarter of 2015, the company established a new grain elevator in Humboldt, TN. This asset will expand Andersons’ current footprint in a strong and thriving region where the land has been shifting from cotton and tobacco crops toward grains.
Maumee, OH-based The Andersons is a diversified company operating in six different business segments ranging from buying, selling and storing grain to leasing railcars and running retail stores catering to the latest home hardware needs.
Andersons currently carries a Zacks Rank #5 (Strong Sell).
Better-ranked stocks in the same sector include Albany International Corp. AIN and Brady Corp. BRC, both carrying a Zacks Rank #1 (Strong Buy).
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