Tate & Lyle share price: Local body backs expansion at Lafayette plant

on Dec 20, 2013
Updated: Oct 21, 2019

iNVEZZ.com, Friday, December 20: A request by Tate & Lyle Ingredients Americas, a subsidiary of Tate & Lyle Plc (LON:TATE), for tax abatement on a number of potential projects at a corn-processing facility in Lafayette, Indiana, has been approved by the local redevelopment commission.

The financial boost will strengthen the plant’s case to win approval by Tate & Lyle leaders, said Chris Olsen, Tate & Lyle vice president for community and government affairs.
In today’s London trading, Tate & Lyle shares fell 0.3 percent to 786.50p as of 8:26 UTC.
**Strengthening case**
The Lafayette Redevelopment Commission on Thursday designated a Tate & Lyle plant that processes corn into starches as an economic revitalisation area for a seven-year period, making it eligible for tax abatements on the installation of up to $69 million in new equipment, documents filed with the city revealed. The decision will help cut costs for the project and allow Tate & Lyle’s existing staff in the area to be retained and expanded, according to Olsen.

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“We have to compete against other projects inside Tate & Lyle for the best return on the capital investment as well as compete with some very strong global competitors,” Olsen said, as quoted by Lafayette Journal and Courier.
Two of the projects involve investments in production equipment, which would allow the plant to improve its processing and expand its existing production lines, plant manager Kevin Niebrugge said. A third project is to address environmental issues, he explained, in response to a question by the commission president Mary Lundstrom regarding the potential negative impacts.

Niebrugge said that the only negative impact would be the increase in fine particulates from the starch drying process, but added that the problem would be offset by taking the plant’s coal boiler offline and switching to natural gas.

Olson noted that the plant was in the final stages of putting together its business proposal. No specific time line has been given on when a decision might come from Tate & Lyle leaders.
The request for tax abatement would still have to be approved by the City Council.
Lafayette Mayor Tony Roswarski commented that the possible expansion is good for the city as it will attract new investments to the area.
**As of 8:58 UTC buy Tate & Lyle shares at 789.50p**
**As of 8:58 UTC sell Tate & Lyle shares at 788.00p**
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