Cargill will expand its influence in the field of bio-substitutions for oil-based plastics by acquiring the business unit of French chemical company Arkema SA in Blooming Prairie.

Minnetonka-based Cargill will invest approximately US$38.8 million in Arkema’s epoxide business, which converts soybean oil into plasticizers that can be used in various household products.

For Cargill, this transaction is the latest member of its three-year-old bioindustry business unit, which is looking for ways to replace fossil fuels with vegetable oils.

Curtis Miller, managing director of Cargill’s Bioindustry Division, said in a statement on Monday: “Industrial customers are increasingly looking for solutions that do not contain petrochemical products, especially when potential concerns about toxicity and sustainability continue. Increasing consumer applications."

For example, in June, Cargill formed a joint venture with a German company to use corn as an alternative to polymers used in various products such as paper cups and sportswear. In August of this year, Cargill said that it would cooperate with Thailand's PTT Global Chemical to build a biopolymer plant in Thailand at a price of approximately US$600 million.

Cargill said it will retain 45 workers at its Arkema factory in Blooming Prairie, about 75 miles south of the Twin Cities.

Workers at the factory mix soybean oil and other vegetable oils with hydrogen peroxide to make a special oil called epoxide. Cargill will then produce bio-based plasticizers and polyols that can be used in products ranging from shower curtain linings to furniture foam.

Cargill executives are already major buyers and processors of soybeans. They said that through the Arkema business, the company has gained more control over the production chain of bio-substitutions. They expect that Cargill will eventually provide customers with a wider range of bio-substitution products, mainly in the plastics, automotive, medical, furniture and flooring industries.

"Adding this capability will allow us to innovate in the polyol value chain, transform our vegetable oils into highly functional compounds, and bring flexibility, durability and thermal stability to various industrial products," Miller Say.

This transaction is one of several transactions in which Arkema has recently repositioned its core business of adhesives and acrylic resins. The two companies said they expect to complete the transaction before the end of the year.

Evan Ramstad is the team leader for business news, working with reporters covering the food industry from the field to the table. He also writes articles on technology, banking and economics.

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