ADM, Lesaffre to Build Yeast Plant

DECATUR - Feb 17/04 - SNS -- Archer Daniels Midland Company (ADM) and Lesaffre have create d ajoint venture company to build a yeast plant in Cedar Rapids, Iowa. Named Red Star Yeast, LLC, the joint venture firm will build its new facility adjacent to ADM’s corn processing facility, starting in mid-March.

G. Allen Andreas, Chairman and Chief Executive of ADM, stated, "The combination of ADM’s production assets and corn syrup capacity in coordination with Lesaffre’s world leading technology in yeast makes us optimistic about the future of our venture. In addition, we will have another supply channel providing grind allocation flexibility in our system of corn wet milling plants."

Lucien Lesaffre, Chairman of the Management Board of Lesaffre et Cie, stated, "Since acquiring Red Star Yeast from Universal Foods Corp., we have been analyzing opportunities to better serve the baking industry in North America and to provide a platform for future growth. We believe that our new venture combines the strengths of both partners to best serve the customer."

The project is contingent upon approval by the Cedar Rapids City Council of a partial property tax exemption through Urban Revitalization. The JV company will also seek financing approval through the Iowa Values Fund and the New Jobs and Income Program, which are administered through the Iowa Department of Economic Development. Red Star Yeast, LLC will be the largest single capital investment made in Cedar Rapids in the last ten years.

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