Sucro Announces Plans for New Cane Sugar Refinery in Chicago Adding New Specialty Domestic Capacity to Growing and Underserved U.S. Market
CORAL GABLES, Fla., Feb. 20, 2024 /PRNewswire/ - Sucro Limited (TSXV: SUG) ("Sucro" or the "Company"), an integrated sugar company focused primarily on serving the North American market, today announced plans to construct a new cane sugar refinery in the Greater Chicago Area to address the growing and underserved U.S. sugar market. Once complete, the new refinery will have a similar scale to the Company's Lackawanna facility in Western New York. The new refinery will have significant value-added specialty sugar capabilities, including large grain crystals used in specialty foods and confectionery, an integrated brown sugar line, specialty liquid production and organic sugar refining capabilities. Start-up and initial production are expected in 2026.
The Chicago refinery will leverage Sucro's existing property and sugar processing infrastructure at University Park, Illinois. The location represents the most inland cane sugar refinery in the U.S. with the capability to serve food processors and manufacturers in the Midwest with a more efficient supply of refined cane sugar and specialty sugars. We expect to fund the equity portion of the facility's construction costs using internally generated cashflows.
"The U.S. sugar market is chronically short of supply, and demand is growing. This is particularly true in specialty value-added segments like large-grain crystals. "Our new Chicago refinery will add much-needed domestic refinery capacity to address the demand for refined sugar and reduce the market's reliance on imports. The refinery's primary focus will be higher value specialty sugar products which are in high demand from U.S. food processors and manufacturers," said Jonathan Taylor, CEO and Founder of Sucro. "The Chicago refinery will represent Sucro's third new facility in the past five years. Once the new Chicago refinery and the recently announced new refinery in Hamilton are complete, we believe Sucro will be responsible for adding more new capacity to the North American market than all other sugar refiners combined. Sucro is also unique in the industry as the only sugar refiner in North America to widely make available less processed, higher color refined granular sugar. This is the highest growth, most sought-after feature by our multinational customers looking for innovation and flexibility."
"I'm happy that Sucro will continue to invest in University Park, proving that the Chicago South Suburbs remain one of the best places to live, work, and raise a family," said Congresswoman Robin Kelly. "This investment will create new jobs and continue to grow an economy that works for everyone."
"This project reinforces the successful partnership the Village has developed with Sucro over the past three years," expressed Mayor Joseph E. Roudez, III. "We are excited for the positive economic impact this will have through improved infrastructure, job creation, and taxation, and we are grateful they chose to further invest in the second largest Industrial Corridor in the State of Illinois."
Mr. Taylor continued, "The new refinery will be closely integrated with our existing production assets in Western New York and Southern Ontario, leveraging the strengths and operating capabilities of a highly efficient network of facilities. The integrated nature of our production assets is designed to supply competitively priced refined cane sugar for our blue-chip customer base of multi-national food manufacturers in the Midwest."
The Chicago asset will have fully integrated logistics infrastructure, including inbound and outbound rail and on-road transport capabilities. The new refinery is expected to have 75 full-time equivalent manufacturing and administration positions once completed. Sucro is a minority-certified company and through its partner, Amerikoa, supports the Wounded Warrior Project, an organization that sponsors veteran homeless shelters, and hires local veterans.
Sucro is a growth-oriented sugar company that operates throughout the Americas, with a primary focus on serving the North American sugar market. The Company operates a highly integrated and interconnected sugar supply business, utilizing the entire sugar supply chain to service its customers. Sucro's integrated supply chain includes sourcing raw and refined sugar from countries throughout Latin America, and refined sugar from its own refineries, and delivering to customers in North America and the Caribbean. Since its inception in 2014, Sucro has achieved significant growth by creating value for customers through continuous process innovation and supply chain re-engineering. Sucro has established a broad production, sales and sourcing network throughout North America with two cane sugar refineries and an additional value-added processing facility. The Company has offices in Miami, Mexico City, Sao Paulo, and Port of Spain. For more information, visit sucro.us and follow us on LinkedIn.
This news release may contain forward-looking information within the meaning of applicable securities laws, which reflect the Company's current expectations regarding future events. Such information includes, but is not limited to, the Company's expectation that the new Chicago refinery will be completed as currently planned, the expected future capacity of the new Chicago refinery, the expected funding of the equity portion of the new Chicago refinery with internally generated cashflows, the expected processing capabilities of the new Chicago refinery and the expected timing for completion and initial production of the new Chicago refinery. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company's control. Such risks and uncertainties include, but are not limited to, the ability to obtain all necessary licences and permits, cost-overruns and delays, negative economic conditions, availability of financing on acceptable terms, changes to laws and import restrictions and duties, actions of competitors and the other risk factors disclosed in the Company's final prospectus dated October 19, 2023 filed under the Company's profile on SEDAR+ at www.sedarplus.ca. Actual results could differ materially from those projected herein. The Company does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required under applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Sucro Limited
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