Louisiana Sugar Refining: A New Era of Competitive Strength

Alan Willits, President, Business Unit Leader, Cargill Corn Milling North America, Lonnie Champagne, General Manager, Louisiana Sugar Cane Products and John Sheptor, President and CEO of Imperial Sugar at groundbreaking of new Louisiana Sugar Refining plant.

Construction now is officially underway on the new state-of-the-art, 3,100 tons per day Louisiana Sugar Refining (or LSR) refinery at Gramercy – a joint venture with Louisiana growers and millers, Cargill and Imperial Sugar Company. The sugar cane refinery – located near both Baton Rouge and New Orleans – signifies a new era of competitive strength for the sugar cane industry in southern Louisiana and America.

For the approximately 700 Louisiana sugar growers, the sugar refinery means economic stability and teaming with reliable production, marketing and distribution partners.

For Imperial Sugar Company (NASDAQ: IPSU), the new refinery will result in the retirement of Imperial Sugar’s existing refinery built originally in 1898. Following the start up of the Louisiana Sugar Refining refinery in 2011, Imperial will own or participate in two of the most modern and safest sugar refineries in North America. Imperial Sugar’s other major sugar refining plant is located at Port Wentworth, near Savannah, Georgia.

“We at Imperial Sugar Company are particularly excited about what this new sugar refining and production plant means for southern Louisiana and the future of the sugar cane industry,” said John Sheptor, president and CEO of Imperial Sugar Company. “Work on the new refinery immediately means approximately 500 construction jobs, followed by new job opportunities for workers when the refinery opens, continuing employment for our associates at Gramercy and an expected economic boost to the region.”

Bobby Jindal, Governor of Louisiana, speaks to more than 250 groundbreaking attendees.

Imperial Sugar’s Sheptor said construction adjacent to the existing refinery would allow LSR to take advantage of current infrastructure and operational support and promote an orderly transition from the existing refinery to the new, state-of-the-art refinery while at the same time keeping the option of running the existing refinery longer if needed.”

Alan Willits, President, Business Unit Leader, Cargill Corn Milling North America, said:

What each company brings to this alliance creates an almost perfect union. Imperial’s Gramercy site, its existing assets, infrastructure and its commitment to purchasing sugar for its on-site retail packaging business gives LSR strategic benefits and efficiencies that it would not otherwise have realized. The cane growers of this region have a 200+year heritage in growing and milling sugarcane and give LSR a sturdy foundation in this region’s rich history. But to fully participate in this industry for the next generation, they needed to take it a step further, into refining finished products and marketing them to food customers.

That’s where Cargill comes in. Cargill has been marketing to food makers for most of our 140 years. We sell flour, salt, flavorings, oils and an array of sweeteners, among many other ingredients. Adding sugar to our portfolio is a natural extension. And there’s no better place to make high quality sugar for those U.S. food manufacturers than right here in Louisiana.

Willits said the joint venture will attempt to follow a path as a good employer, a good supplier to its customers and a good corporate citizen.

When the new sugar refinery is completed in 2011, Imperial will continue to operate the small bag packing facility in Gramercy, with refined bulk sugar purchased from LSR under a long term, market-based supply agreement.