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Indianapolis-based CountryMark Cooperative Inc. plans to boost fuel production 12 percent when a $20 million expansion of its Mount Vernon refinery is completed in May.
The additional 3,000 barrels a day will amount to 45 million gallons a year.
The southern Indiana refinery is supplied by oil from the Illinois Basin, an underground field that also touches Indiana and Kentucky.
CountryMark, a farmer-owned co-op that sold its animal feed and crop supply businesses in the late 1990s following heavy losses, specializes in refining and distributing diesel fuel.
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