KANSAS CITY — Investors in Paseo Biofuels, L.L.C., the Missouri Soybean Association (M.S.A.) and Cargill announced plans to expand the Paseo biodiesel plant in Kansas City, a move that will increase biodiesel production capacity by 40%.

The facility, which opened in 2008, uses soybean oil as its primary feedstock, and produces 40 million gallons of biodiesel and 30 million lbs of food-grade glycerin annually. The expansion is expected to be complete by March 2013.

“Our partnership with Paseo has gone very well over last four years,” said Mark Stonacek, North America business unit leader for Cargill’s Grain and Oilseed Supply Chain. “Together, we have built an excellent operation that serves many of the major petroleum retailers in the U.S.”

Dale R. Ludwig, executive director and chief executive officer of the Missouri Soybean Association, said the business model “has been ideal.”

“Co-locating the biodiesel plant next to a soybean crushing facility reduces cost, saves time and money while working with three great partners,” Mr. Ludwig said.