Flint Hills Resources to acquire Arthur, Iowa-based ethanol plant

By Flint Hills Resources LLC | July 11, 2013

Flint Hills Resources LLC has announced an agreement with Platinum Ethanol to acquire its Arthur, Iowa, ethanol plant.  The transaction is expected to close later this year, subject to customary closing conditions including regulatory approvals.  The purchase price is not being disclosed.

This will be Flint Hills Resources’ fifth ethanol plant in Iowa and sixth ethanol plant overall. 

The Arthur facility opened in 2008 and has an annual capacity of 110 million gallons of ethanol.  It also produces 300,000 pounds of distillers’ grains and approximately 23 million pounds of non-food grade corn oil each year. The plant employs about 50 people.

“The Platinum Ethanol plant employees, along with our General Manager Nick Bowdish and Plant Manager Mike Messing have worked tirelessly to make Platinum Ethanol a leader in the dry mill ethanol industry in the U.S.” said principal Platinum Ethanol shareholder Ron Fagen. “Flint Hills Resources shares our views regarding the strength and importance of our employees.” Fagen said.

“The Arthur plant will be a strong addition to our biofuels business,” said Brad Razook, chief executive officer and president of Flint Hills Resources. “This is a quality operation in one of the best corn-producing regions of the country and it’s supported by a topnotch professional workforce. We look forward to welcoming the Arthur team to Flint Hills Resources.”

Flint Hills Resources' biofuels business currently includes five ethanol plants with a combined annual capacity of 550 million gallons, a biodiesel plant in Texas, and investments in biofuels technology and feedstock development.

Flint Hills Resources is an indirect, wholly-owned subsidiary of Koch Industries Inc., which is one of the largest private companies in the world.