Commissioner of Agriculture and Forestry Bob Odom, on behalf of the Louisiana Agricultural Finance Authority, and Cementos Andino S.A. have signed an agreement that sells 80 percent of the Lacassine syrup mill to the company and requires construction of a $50 million ethanol plant next to the mill.

"This is a great day for the people of Louisiana. The ethanol plant will bring additional income to farmers, jobs will be created and in the future fuel prices could go down as we become less dependent on foreign oil," Odom said. "Cementos Andino is a reputable company and they are going to be a positive force in the business community of southwest Louisiana."

The agreement calls for farmers in the Lake Charles Cane Cooperative to remain owners of 20 percent of the syrup mill. They will also own 20 percent of the ethanol plant.

"I have said all along that I want Louisiana farmers to have a role in the development of the state's ethanol industry. This deal helps solidify the role farmers will play in emerging agriculture industries," Odom said.

Cementos Andino is a cement company based in Colombia. The family that owns Cementos recently sold the company's cement interests to focus on ethanol.

Daniel Pelaez, president of Cementos Andino, said, "We are an industrial conglomerate with vast experience in many different activities, including the building materials industry, the agro-technical and agricultural business among some others. For this particular project in Lacassine we have gathered together a group of technicians, some of them with more than three decades of experience in the sugar industry. Our team has also been the leader in the installation of some ethanol plants in Colombia which today are producing more than 1 million liters per day of ethanol. The decision of investing in Louisiana is a great step toward the internationalization of our group. We are very proud of having the opportunity of doing business in the United States and we are very optimistic about making a great team with the farmers from Louisiana."

The Colombian company decided to focus on ethanol both in North and South America and it is currently working on some other projects for the production of ethanol from sugarcane. The funds coming from the sale of the company's cement and ready mix assets will mostly be invested in the ethanol and agricultural business as a clear bet on the future of "green energy."

The company is paying a $300,000 deposit and has 15 days from the signing of the agreement to begin acquiring the environmental permits needed for construction of the ethanol plant.

The Lacassine syrup mill was financed by the state for $45 million. Cementos Andino and the Lake Charles Cane Cooperative are buying the mill for $60 million. The mill will make sugarcane syrup from cane grown in southwest Louisiana. The syrup will be used to produce ethanol on site or will be transported to mills in southeast Louisiana for processing into raw sugar. The syrup mill reduces the number of cane trucks on roads and highways by making its product transportable by train.

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