Food processing company Archer-Daniels-Midland Company (NYSE:ADM) has partnered with climate technology company Solugen to scale a range of plant-based specialty chemicals and bio-based building block molecules in a new manufacturing facility in Marshall, Minnesota.

Under the terms of the agreement, Solugen will build a new 500,000-square-foot biomanufacturing facility adjacent to ADM's existing corn complex in Marshall.

The facility will use dextrose from ADM to scale its current line of lower-carbon organic acids and develop molecules to replace existing fossil fuel-based materials.

The parties are also planning to explore commercialization opportunities of the biomaterials.

"ADM is one of the largest dextrose producers in the world, and this strategic partnership will allow us to further diversify our product stream as we continue to support plant-based solutions spanning sustainable packaging, pharma, plant health, construction, fermentation, and home and personal care," said Chris Cuddy, president of ADM's Carbohydrate Solutions business.

Price Action: ADM shares are trading higher by 1.51% at $71.10 on the last check Monday.