SHELDON, Iowa (AP) — Ag Partners feed mill plant in northwest Iowa is planning an expansion with $7.2 million in improvements to increase the plant’s ability to make livestock feed. The Sioux City Journal reports that Ag Partners officials announced the expansion on Thursday. Officials say construction will begin immediately and is expected to be complete in 2016.

The first phase will include the addition of a 140-foot pellet mill tower, a 60-ton-per-hour pellet line and a 6-ton mixer. The additions will increase capacity to 600,000 tons of meal feed annually and 300,000 tons of pellets. Ag Partners officials say the expansion will meet an increased demand in the marketplace.

A future second phase will include a second 60-ton-per-hour pellet line to double pellet capacity to 600,000 tons.