BioExx Demobilizing Construction Force and Preparing for Start-Up of Protein

With start-up rapidly approaching, the entire BioExx team is ready and anxiously awaiting the opportunity to run the facility in its entirety to fulfil its goal to produce the world’s first commercially available food-grade canola protein isolate.

7 Jul 2010 --- BioExx Specialty Proteins Ltd. is pleased to confirm that it has commenced the process of demobilizing its Saskatoon construction and installation force, including having already eliminated the night shift and planning to reduce the workforce by 75% by the end of next week. The balance of the personnel will be reduced gradually with a core group remaining through and after the production of first protein to provide services required during start-up, as well as to complete ancillary and non-critical items thereafter.

While specific schedule risks do remain, the current state of near readiness suggests start-up within the next few weeks. The path to start-up has been challenged by several issues beyond BioExx control such as the abundant and severe rain in Saskatoon, that recently left a significant portion of the business park where the plant is situated under water, as well as industry-wide labour disruptions with the mechanical contractors’ union which has been preventing most weekend and overtime work.

Commissioning has now commenced in the protein area and given that this area contains fewer vessels, valves and instruments than extraction, it is expected to take less time. Commissioning of extraction has proceeded well under the direction of the Company’s automation systems contractor with no significant issues having been encountered. This level of success to date speaks to the quality of the engineering design as well as the integrity of the work completed by the Company’s installation and commissioning contractors.

Technical staff from key equipment suppliers began arriving this week to assist in equipment start-up and operator training, with several of these vendors remaining on site through protein production. With start-up rapidly approaching, the entire BioExx team is ready and anxiously awaiting the opportunity to run the facility in its entirety to fulfil its goal to produce the world’s first commercially available food-grade canola protein isolate.