DECATUR, ILL. — Archer Daniels Midland Co. said it is building a new soybean processing plant in Paraguay, a move that is expected to increase its South American oilseed crush capacity by more than 25%.

The plant, which will be located adjacent to an ADM fertilizer-blending facility in Villeta, will have daily crush capacity of 3,300 tonnes. The facility’s proximity to a nearby port plant on the Paraguay river is expected to increase local crop origination and export capacity and allow the company to import fertilizer components more cost effectively.

Construction on the facility began in June and is expected to be complete in 2012, ADM said.

“This plant will link South America’s productive farmers with the world’s growing demand for food and energy,” said John Rice, executive vice-president of commercial and production at ADM. “ADM will grow oilseed crush volumes over the next five years at about double predicted market rate. We will achieve a compound annual growth rate of 7% to 10% through both organic growth and acquisitions.”