Bunge will begin $28.6 million expansion in May to improve unloading and distribution capabilities
Apr. 21—Bunge North America Inc.'s Decatur plant is gearing up for a $28.6 million expansion to improve the unloading of local farmers' soybeans upon delivery, plant production and the transfer of finished goods into waiting barges.
Industrial Development Board of Decatur attorney Barney Lovelace told the board on Thursday that the expansion of the 1400 Market St. facility is not expected to create any new jobs but would benefit local farmers and make Bunge's 205 employees' jobs more secure.
He said Bunge-Decatur employees' average annual salary is $74,000, not including benefits.
Started by Goldkist in 1972, the Decatur plant was purchased by Bunge in 1977, and it is now one of the two largest soybean manufacturing plants in North America. The other similarly sized plant is in Decatur, Indiana.
Victor Pacheco, Bunge-Decatur facility manager, said his plant is a fully integrated facility that receives soybeans from farmers within a 300-mile radius and then produces soybean oil, soybean meal and several oil blends.
The products are then used to produce animal feed and make cooking oils and plant-based proteins that are key ingredients for numerous consumer and restaurant brands.
"A lot of farmers have been doing business with us for years," Pacheco said. "We like to say we feed the chickens and then supply the oil to fry them."
The project includes improvements to existing buildings and equipment, adding a new building and installing manufacturing equipment. Construction is slated to begin May 1 and be completed by Dec. 1.
Pacheco said a lot of the plant's production goes onto barges on the Tennessee River so a major part of the project is redoing the belts that load barges.
"We need to fill a barge a day," Pacheco said. "We unload 120,000 bushels a day, and the upgrade will allow us to increase that to 200,000 bushels a day."
Pacheco said the plant daily receives 145 trucks making deliveries from local farmers. Each truck carries 1,000 bushels. The improvements will allow the plant to increase the speed of unloading the trucks, allowing farmers to leave the facility more quickly.
The Industrial Development Board on Thursday approved the abatement of just over $1 million in non-educational property taxes that would otherwise be payable by Bunge to Decatur, Morgan County and the state over 10 years.
The IDB agreed to abate a total of $669,244 in non-educational sales and use taxes that would otherwise be payable during construction. This includes the abatement of an estimated $286,819 in Decatur taxes and $382,425 in state taxes.
The project will generate $1.23 million over 10 years in educational property taxes for Decatur, Hartselle and Morgan County school systems. This amount includes $928,300 that will go to Decatur City Schools, according to Lovelace.
It also will generate about $95,600 in educational sales and use taxes during the construction period that will benefit Decatur, Hartselle and Morgan County school districts.
— bayne.hughes@decaturdaily.com or 256-340-2432. Twitter @DD_BayneHughes.
