Company Plans to Double Mill Capacity, With Minimal Increase in Labor and a Minimal Capital Investment to Expand Capability to Deliver Domestically Sourced Ingredients
TOMBALL, TX / ACCESSWIRE / May 18, 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 significant capacity expansion of the Company's MGI Grain Incorporated ("MGI") facility in East Grand Forks, Minnesota. The expansion is expected to double the capacity of the pearling mill, enabling RiceBran to meet growing demand for North American-sourced, grain-based ingredients and with a minimal capital investment and a limited increase in labor.
The project will replace one of the mill's main grain de-hullers with a new de-huller/pearler; more than doubling the plant's production capacity. In addition to the new huller, MGI will support increased throughput and quality with the addition of a color sorter, as well as enhancements to the mill's grain receiving, cleaning and conveyance systems. The project, which is being executed by a trusted contractor and RiceBran's own internal engineering team, is deployed in a manner that minimizes disruption to the mill's daily operations. The investments, which totaled less than half-a-million dollars, are expected to be completed in mid-summer 2022.
"These upgrades will allow RiceBran to finally leverage MGI's true potential expanding volume and process flexibility while enhancing product quality," said MGI business lead Kevin Pray. "This will allow us to double the capacity of the pearling mill within the same building footprint, giving us the ability to meet increasing customer demands while navigating a tight labor market, with only a modest capital investment."
"The demand for regionally-sourced ingredients and agricultural products is soaring given the uncertainty of the geopolitical environment and challenges in the global supply chain, and we are able to respond," said RiceBran Chairman Peter Bradley. "Not only does MGI provide RiceBran with strategic options in the long-term as a source of new feedstocks for our high value ingredient business, this small investment in significant incremental capacity provides us 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