July 11 (Reuters) - Flint Hills Resources said on Thursday it will acquire Platinum Ethanol’s plant in northwestern Iowa, a facility with an annual capacity of 110,000 million gallons.
The deal is expected to close later this year and would bring to six the number of ethanol plants owned by Flint Hills, five of which would be in Iowa, the No. 1 ethanol- and corn-producing state.
Flint Hills, based in Wichita, Kansas, also operates oil refineries in Alaska, Minnesota and Texas as well as chemical and polymer plants in Illinois, Michigan and Texas.
Once the deal is completed, Flint Hills’ six ethanol plants would have an annual capacity of 660,000 million gallons - less than 1 percent of the total production capacity in the United States, according to the Renewable Fuels Association.
“The Arthur plant will be a strong addition to our biofuels business,” Brad Razook, chief executive and president of Flint Hills Resources, said in a release.
Officials from Platinum did not immediately return requests for comment. Terms of the deal were not disclosed.
The plant in Arthur opened in 2008, employs 50 people and receives corn at a rate of 60,000 bushels per hour.