Cargill to Sell Billings Plant to Westfeeds
"This agreement further underscores our dedication to serving the animal nutrition needs of our customers as we strive towards our vision of being the premier provider of animal nutrition in the Northern Plains."
8 Jan 2010 --- Cargill announced that it has reached an agreement with Westfeeds to buy Cargill's Billings feed mill and property. Officials from both companies anticipate that the sale will close by mid-February 2010.
According to Westfeeds officials, the addition of the Billings feed mill facility will complement the company's existing presence in Billings as well as regionally.
"We are pleased by the opportunities that Cargill's Billings feed operations present for our customers," said Scott Black, president and chief executive officer of Westfeeds. "This agreement further underscores our dedication to serving the animal nutrition needs of our customers as we strive towards our vision of being the premier provider of animal nutrition in the Northern Plains."
Cargill acquired the facility from Farr Better Feeds in 1991. The plant, which was built in 1968, has six full-time employees and a production capacity of 50,000 tons. Cargill Animal Nutrition produces a variety of bulk cattle feeds at the facility for the region's beef and dairy producers. With this agreement, Cargill will continue to produce bagged feeds, pet food, and its proprietary ROC mineral product, among other offerings, throughout the region at other Cargill facilities.
"Under this arrangement, we are placing a valued feed manufacturing asset in the hands of a local organization that shares our commitment to this market and its livestock customers," said Karl Thoene, general manager for Cargill Animal Nutrition's Pacific Northwest region. "Through an exclusive, bulk-feed toll manufacturing agreement with Westfeeds and by shifting our bagged feed manufacturing focus to other Cargill regional facilities, we streamline our operations and better utilize our regional capabilities to improve our customer offerings. This agreement combines Westfeeds' manufacturing expertise with Cargill's nutritional expertise, thereby bringing additional value to customers throughout Montana and northern Wyoming."
