CHS Cooperatives may not acquire a Farmland Industries grease plant, after all.
When the two farm cooperatives announced early this month that CHS was buying Farmlands 40 percent stake in their Country Energy joint venture, they stated that CHS would assume ownership of lube factories – including a Kansas City, Mo., grease plant – that Farmland brought to the partnership in 1998.
This week, however, CHS officials acknowledged that the cooperatives are considering adjustments to the deal and that the grease plant may not change hands.
We are trying to arrange a supply manufacturing agreement under which the plant would remain in Farmlands hands but would produce grease exclusively for Country Energy, said Anwer Hussain, Country Energys vice president for lubricants. But we wont have details worked out for another day or two. Hussain declined to discuss the reason for the change.
Country Energy produces and markets agricultural petroleum products, including lubricants, which are sold under the Cenex brand name.