By ROBIN SHANNON

L’Observateur

GRAMMERCY – For the second time in as many years, officials broke ground on a new sugar refinery in the River Parishes that is slated to be one of the largest in the nation.

Officials from Imperial Sugar Co., Cargill Inc. and Louisiana Sugar Growers and Refineries LLC (SUGAR) joined state and local leaders at a ceremony near Fifth Avenue in Gramercy to officially kick off construction of the $150 million refinery venture, known as Louisiana Sugar Refining LLC. The three groups will act as partners in the refinery’s operations.

“I would rather this be a ribbon cutting instead of a ground breaking,” joked St. James Parish President Dale Hymel. “I’m certainly glad to see construction has begun. It is an exciting day for St. James Parish.”

The refinery was originally pegged for construction in St. John Parish on property near a Cargill grain elevator in Reserve, but the national economic downturn forced Cargill and SUGAR to rethink the endeavor. When the project was moved to St. James in March of last year, it picked up Imperial as the third partner. The Texas-based company is helping build the refinery near an existing Imperial refinery in Gramercy.

“Sugar refining has been a part of this community for more than 100 years, which shows the true value of the industry to the state,” said Imperial Chief Executive Officer John Sheptor. “This venture will ensure a market for Louisiana growers for years to come.”

Sheptor said when the refinery begins operations in early 2011, it will be equipped to refine a million tons of raw sugar per year with nearly all of it coming from the 700 sugarcane growers represented under the SUGAR umbrella. Lonnie Champagne, the group’s general manager, said those growers produced more than 975,000 tons of sugar in 2009.

“This is like a new century for these growers,” Champagne said. “It gives them a share in a refinery for the first time in Louisiana history. It is a great day for all of them.”

The lion’s share of the funding for the refinery will come from $100 million in Gulf Opportunity Zone bonds, a program designed to help the region recover from hurricanes Katrina and Rita. The partners have agreed to put up the remaining funds for the project.

Alan Willits, president for Cargill Corn Milling, said Cargill will operate as the exclusive marketer for the sugar produced at the refinery. He said the refinery will be the first sugar-producing facility to be built in the United States in almost a century.

“Seeing this project through is about standing up for the state’s many sugar growers,” said Gov. Bobby Jindal. “This venture ensures that our growers’ jobs stay in tact. It gives us greater control of our own destiny and allows us to compete on a more even playing field.”

Sheptor said the new refinery would incorporate elements of the existing refinery, which was built in 1895. He said the new plant is expected to create about 150 permanent jobs within the operations and more than 500 temporary jobs at peak construction. He said crews have already begun to drive pilings at the 210-acre site. Construction is expected to take between 18 and 24 months.