AgroSteel Industries, the agro-manufacturing company that has been struggling with a string of bankruptcies in recent years, is planning to take advantage of the $1 billion in coal leases that the US government has allocated to the coal industry.
The government has awarded 1.6 million acres of land in the Midwest to Agro, which will now try to capitalize on the deal by selling coal to foreign governments, the Wall Street Journal reported on Monday.
Agro already has a $600 million deal with the Philippines and will also be looking to sell to a foreign power, the newspaper said.
Agro has been looking to build its global agro business with the coal lease program.
Earlier this year, the company announced that it had acquired a 40-year lease on the site of a former nuclear plant in Illinois that the company hoped would be used to produce agro steel.
The Agro steel facility is located near Chicago and will produce steel for industrial, agricultural, and utility use.
Agros chief executive officer Richard J. McEwen said in a statement that the agreement will enable the company to increase its production capacity and scale to support future demand.
Agros has been producing steel since the 1950s and has recently started producing biofuels.