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Ethanol plant strategic plan (Pine Lake Corn Processors, LLC) Pine Lake Corn Processors, LLC was organized with the purpose to build, own and operate an ethanol production facility and located in Steamboat Rock, Iowa. Since that time Pine Lake Corn Processors has become number one among 21 farmer-owned ethanol facilities in Iowa. It produces 15 million gallons of ethanol a year. In 2002, A unit of Williams (NYSE: WMB) signed an agreement with Pine Lake Corn Processors and owned its all fuel-grade ethanol. The agreement helped Williams Bio-Energy to meet market needs. From the other side, for Pine Lake Corn Processors it was beneficial.
First of all an experienced ethanol marketing team was created to supervise the success of the project. Secondly, the organization and its associations supported Pine Lake Corn Processors to sustain profitability for the longer term and created new markets. Ethanol is renewable and high-octane fuel. It is produced from the fermentation of locally corn grown.
Ethanol is oxygenated thats why it is capable of reducing air pollution. It is sold across the United States and improves automobile performance. The demand of the product has been growing constantly. It occupies more than 12 percent of all automotive fuels sold in the United States.
It should be pointed that 2. 7 gallons of ethanol can be produced from one bushel of corn. 300 gallons of ethanol (enough for 4 cars to be fueled in a year) are produced from one acre of corn. Taking into account that the amount of oil is limited (each year the U. S. spends $ 50 billion to protect Middle East oil) the development of renew fuel becomes necessary. Ethanol production has a lot of benefits. First of all it provides more than 200, 000 jobs.
It is very important for rural areas. Ethanol helps to reduce air pollution. The next advantage is reducing the dependency on foreign oil. It is very important because most of these countries are with unstable countries.
Most of all, ethanol production reduces the trade deficit by $ 5. 1 billion and rises the value of each bushel of corn on 20 - 40 cents. Pine Lake Corn Processors is not for a long time in the business. So, it is in beginning stages of extending its production and wants to expand the plant to a 40 -million-gallon facility. For Pine Lake Corn Processors management is one of the most important factors in starting a new business.
It is known that good management depends on well-coordinate work of the executive management team. A lot of work including expansion, financing, negotiating and construction is regulated by the existing management team. Thats why PLCP pays great attention to business people and community leaders among its members and workers. By April 1 st, 2005, the plant had been mechanized completely.
Its project philosophy and planning include searching for new and innovative ways, strengthening current partnership with Monsanto Enviro-Chem Systems, Delta-T Corporation, and Noble Americans. The general contractor has become Monsanto Enviro-Chem Systems, of St. Louis, Missouri. In May 17, 2005, Pine Lake Corn Processors, LLC was named by the Renewable Fuels Association (RFA) the plant number one in Steamboat Rock, Iowa. For short period of time the organization increases the productivity to 7 million bushels of corn into 20 million gallons of ethanol and 60, 000 tons of distillers grains annually. As it was emphasized the farmer-owned plant has become a great economic engine for the surrounding economy and a great support for Iowas economy.
Larry Means pointed that the plant start-up was without serious difficulties and very smooth. Pine Lake Corn Processors performs good design and the operation staff can bring the capacity over 100 % in less than two weeks. And the plant is going to improve the capacity gradually each week. Bibliography: Pine Lake Corn Processors. Iowa State University Extension, 2006. web Williams, December 12, 2001.
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