Penford Corporation Announces Ethanol Groundbreaking
November 28 2006 - 9:00AM
Business Wire
Penford Corporation (Nasdaq: PENX), a global leader in ingredient
systems for food and industrial applications, today announced the
groundbreaking of its new ethanol production facility. Penford
previously announced an investment of $42 million for approximately
40 million gallons of ethanol production capacity at its Cedar
Rapids, Iowa, facility. The Company expects the facility to be
producing ethanol by the end of 2007. �On June 28 we announced
plans to enter the growing bio-fuels market,� said Tom Malkoski,
Penford Corporation President and Chief Executive Officer. �We are
progressing as planned and project milestones have been obtained.
We have contracted with three industry-leading firms for the
design, engineering and construction to help assure that the
process and cost profile will be optimal for the site. Bid packages
for the longer �lead-time� items have been issued. We have received
requisite permits for construction, and water and air emissions.
Full project funding was obtained on October 5 through a $145
million credit facility with several leading commercial banks. The
credit agreement expanded our available credit by $40 million to
finance the construction of the ethanol facility, and to continue
to support growth in our food businesses.� �Obtaining the air
permit was a significant achievement for Penford,� stated Tim
Kortemeyer, President of Penford Products Company. �The permit
allows the Cedar Rapids facility to increase grind capacity by 30%
over historical levels. The ethanol facility is being designed to
efficiently produce between 25 and 45 million gallons of ethanol
per year. The increase in grind rate, along with the range of
ethanol production, should allow for flexibility in the product mix
of industrial starch and ethanol based upon market conditions and
customer needs.� �Additionally, we believe the fermentation
platform will extend the potential of our Cedar Rapids
bio-processing asset by expanding our range of starch modification
reactions and by opening up opportunities for high value added
industrial chemicals over the next several years,� Malkoski added.
Penford Corporation develops, manufactures and markets specialty
natural-based ingredient systems for various applications,
including papermaking, textiles and food products. Penford has nine
locations in the United States, Australia and New Zealand. The
statements contained in this release that are not historical facts
are forward-looking statements that represent management�s beliefs
and assumptions based on currently available information.
Forward-looking statements can be identified by the use of words
such as �believes,� �may,� �will,� �looks,� �should,� �could,�
�anticipates,� �expects,� or comparable terminology or by
discussions of strategies or trends. Although the Company believes
that the expectations reflected in such forward-looking statements
are reasonable, it cannot give any assurances that these
expectations will prove to be correct. Such statements by their
nature involve substantial risks and uncertainties that could
significantly affect expected results. Actual future results could
differ materially from those described in such forward-looking
statements, and the Company disclaims any intention or obligation
to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. Among the
factors that could cause actual results to differ materially are
the risks and uncertainties discussed in this release, and those
described from time to time in filings with the Securities and
Exchange Commission which include, but are not limited to,
competition; the possibility of interruption of business activities
due to equipment problems, accidents, strikes, weather or other
factors; product development risk; changes in corn and other raw
material prices and availability; changes in general economic
conditions or developments with respect to specific industries or
customers affecting demand for the Company�s products including
unfavorable shifts in product mix; unanticipated costs, expenses or
third party claims; the risk that results may be affected by
construction delays, cost overruns, technical difficulties,
nonperformance by contractors or changes in capital improvement
project requirements or specifications; interest rate and energy
cost volatility; foreign currency exchange rate fluctuations;
changes in assumptions used for determining employee benefit
expense and obligations; or other unforeseen developments in the
industries in which Penford operates. Penford Corporation (Nasdaq:
PENX), a global leader in ingredient systems for food and
industrial applications, today announced the groundbreaking of its
new ethanol production facility. Penford previously announced an
investment of $42 million for approximately 40 million gallons of
ethanol production capacity at its Cedar Rapids, Iowa, facility.
The Company expects the facility to be producing ethanol by the end
of 2007. "On June 28 we announced plans to enter the growing
bio-fuels market," said Tom Malkoski, Penford Corporation President
and Chief Executive Officer. "We are progressing as planned and
project milestones have been obtained. We have contracted with
three industry-leading firms for the design, engineering and
construction to help assure that the process and cost profile will
be optimal for the site. Bid packages for the longer 'lead-time'
items have been issued. We have received requisite permits for
construction, and water and air emissions. Full project funding was
obtained on October 5 through a $145 million credit facility with
several leading commercial banks. The credit agreement expanded our
available credit by $40 million to finance the construction of the
ethanol facility, and to continue to support growth in our food
businesses." "Obtaining the air permit was a significant
achievement for Penford," stated Tim Kortemeyer, President of
Penford Products Company. "The permit allows the Cedar Rapids
facility to increase grind capacity by 30% over historical levels.
The ethanol facility is being designed to efficiently produce
between 25 and 45 million gallons of ethanol per year. The increase
in grind rate, along with the range of ethanol production, should
allow for flexibility in the product mix of industrial starch and
ethanol based upon market conditions and customer needs."
"Additionally, we believe the fermentation platform will extend the
potential of our Cedar Rapids bio-processing asset by expanding our
range of starch modification reactions and by opening up
opportunities for high value added industrial chemicals over the
next several years," Malkoski added. Penford Corporation develops,
manufactures and markets specialty natural-based ingredient systems
for various applications, including papermaking, textiles and food
products. Penford has nine locations in the United States,
Australia and New Zealand. The statements contained in this release
that are not historical facts are forward-looking statements that
represent management's beliefs and assumptions based on currently
available information. Forward-looking statements can be identified
by the use of words such as "believes," "may," "will," "looks,"
"should," "could," "anticipates," "expects," or comparable
terminology or by discussions of strategies or trends. Although the
Company believes that the expectations reflected in such
forward-looking statements are reasonable, it cannot give any
assurances that these expectations will prove to be correct. Such
statements by their nature involve substantial risks and
uncertainties that could significantly affect expected results.
Actual future results could differ materially from those described
in such forward-looking statements, and the Company disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. Among the factors that could cause actual results to
differ materially are the risks and uncertainties discussed in this
release, and those described from time to time in filings with the
Securities and Exchange Commission which include, but are not
limited to, competition; the possibility of interruption of
business activities due to equipment problems, accidents, strikes,
weather or other factors; product development risk; changes in corn
and other raw material prices and availability; changes in general
economic conditions or developments with respect to specific
industries or customers affecting demand for the Company's products
including unfavorable shifts in product mix; unanticipated costs,
expenses or third party claims; the risk that results may be
affected by construction delays, cost overruns, technical
difficulties, nonperformance by contractors or changes in capital
improvement project requirements or specifications; interest rate
and energy cost volatility; foreign currency exchange rate
fluctuations; changes in assumptions used for determining employee
benefit expense and obligations; or other unforeseen developments
in the industries in which Penford operates.
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