Company Plans to Add Fifth Extruder to Expand Capacity for Companion Animal Market
TOMBALL, TX / ACCESSWIRE / June 1, 2022 / RiceBran Technologies (NASDAQ:RIBT) (the "Company") a global leader in the development and manufacture of nutritional and functional ingredients derived from rice and other small and ancient grains for human food, nutraceutical, pet care and equine feed applications, today announced the initiation of a capacity expansion of the Company's Core-SRB facility in Mermentau, Louisiana. The expansion is expected to increase capacity of the facility's SRB stabilizing capabilities, enabling RiceBran to meet growing demand for North American-sourced ingredients for the companion animal market.
The project which will be completed in the third quarter, will add a fifth extruder to the RiceBran's Mermentau, Louisiana facility. In addition to the additional extruder, RiceBran has also competed remediation of the company's warehouse and distribution facility in Lake Charles, Louisiana, after it was damaged in Hurricane Laura. Upgrades to this facility completed in this remediation will support the increase in capacity at Mermentau with enhanced logistics and loadout capabilities. The project at Mermentau, which is being executed by RiceBran's own internal engineering team, is repurposing equipment from one of RiceBran's other facilities and is expected the be completed at a minimal cost to the company, while the remediation of Lake Charles was entirely funded by insurance proceeds.
"These upgrades provide important redundancy and will allow our rice bran stabilizing facility in Mermentau to match the full capacity of our supply partner, who in turn has made investments over the past two years to minimize historical seasonal downtime," said core-SRB business lead Garry Primeaux. "Together, with the remediation and enhancement of Lake Charles, these factors add significant to overall capacity to our Louisiana operations, ensuring that we will be able to meet the rapidly growing demands of new and existing customers the companion animal market, with only a modest capital investment."
"The companion animal market is experiencing tremendous growth due to the high volume of people that acquired animal companions during the Covid epidemic," said RiceBran Chairman Peter Bradley. "This growth has been further accelerated by the popularity of companion animals in higher-demographic households, and these new owners' desire to feed their pets healthy and natural products. Combined, these factors are driving a structural shift in the industry toward stabilized rice bran ingredients, and we are able to respond. This relatively modest investment at Mermentau, along with the remediation and enhancement of our Lake Charles facility, provides RiceBran with a unique opportunity to capitalize on the current macro-environment."
About RiceBran Technologies
RiceBran Technologies is a specialty ingredient company focused on the development, production, and marketing of products derived from traditional and ancient small grains. Notably, we are global leader in the production and marketing of stabilized rice bran (SRB), and high value-added derivative products derived from SRB, as well as a processor of rice, rice co-products, and barley and oat products. We create and produce products utilizing proprietary processes to deliver improved nutrition, ease of use, and extended shelf-life, while addressing consumer demand for all natural, non-GMO and organic products. The target markets for our products include food and animal nutrition manufacturers and retailers, as well as specialty food, functional food and nutritional supplement manufacturers and retailers, both domestically and internationally. More information can be found in the Company's filings with the SEC and by visiting our website at http://www.ricebrantech.com.
This release contains forward-looking statements, including, but not limited to, statements about RiceBran's expectations regarding its future financial results, sales growth, Adjusted EBITDA (non-GAAP) improvements, and SG&A. These statements are made based upon current expectations that are subject to known and unknown risks and uncertainties, including the risks that operations are disrupted by the COVID-19 pandemic and timing of profitable operations. RiceBran Technologies does not undertake to update forward-looking statements in this news release to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking information. Assumptions and other information that could cause results to differ from those set forth in the forward-looking information can be found in RiceBran Technologies' filings with the Securities and Exchange Commission, including its most recent periodic reports.
SOURCE: RiceBran Technologies