Cargill is planning to build a $45 million grain handling and shipping facility in West Memphis that will employ about 15 people.
The company has received the necessary permits and now is working on the timeline for the start of construction and completion of the project. Mark Klein, a Cargill spokesman, said the facility should become operational in 2016.
"This business is focused on partnering with our farmer customers -- there's a good base in Arkansas -- and we're looking forward to working with them to move their product into the global market," Klein said. "It's here in part because there's been increased production in Arkansas of corn and soybeans. It's to address that supply."
The West Memphis plant will have three truck-receiving areas that will allow farmers to unload grain quickly. On the shipping end, the facility will be capable of holding up to five barges, loading as many as eight barges in a full day, according to a news release.
The facility will complement Cargill's grain storage assets along the Mississippi River and export facilities in the Gulf. It will be Cargill's first grain elevator in Arkansas.
Ward Wimbish, director of economic development for West Memphis, said Cargill's commitment to build a local facility is part of a larger effort by the city to keep Arkansas farmers from having to send produce across the river into Memphis.
About 70 million bushels of grain are produced and harvested within an hour's drive of West Memphis, he said.
Consolidated Grain and Barge opened a facility in West Memphis three years ago, and Bunge North America bought the Riceland Foods grain elevator in 2011. Combined with Cargill and another announcement expected later this year, the town should be able to accommodate those 70 million bushels, Wimbish said.
"We're delighted Cargill is at the point where they're committed to doing this," Wimbish said. "This impact extends beyond West Memphis. This is for all over eastern Arkansas, which now has an outlet for products without having to leave the state. It saves them truck time, saves them fuel time and reduces congestion on the bridges."
Grant Tennille, executive director of the Arkansas Economic Development Commission, said the commission had been in contact with Cargill and that no incentives package had been offered.
Scott Hardin, spokesman for the commission, said the commission would work with Cargill to see if it qualifies for any statutory incentives.
Wimbish said he was excited to have the Cargill facility in town.
"It's great to have the business," he said. "Cargill is a name that is recognized around the world. We're proud that they are in our community now. We've always had a great relationship with them as we've worked with them over the last few years."
Information for this story was contributed by Chris Bahn of the Arkansas Democrat-Gazette
Business on 07/11/2014