MGP focus of new product development

14 Oct 2005

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To be built at a projected cost of $2.5 million, the technical center will be located on property at the southwest corner of the intersection of Second and Commercial Streets in downtown Atchison.

14/10/05 MGP Ingredients, Inc. has unveiled plans today for the construction of a new product development technical center and corporate office building in Atchison, where the company has been headquartered since its founding in 1941. The company also announced plans for $1.9 million in upgrades to a facility that it recently purchased in Onaga, Kan., for use in manufacturing natural plant- based biopolymers. The projects, which were approved by the Company's Board of Directors, were highlighted during MGPI's annual meeting of Stockholders.

To be built at a projected cost of $2.5 million, the technical center will be located on property at the southwest corner of the intersection of Second and Commercial Streets in downtown Atchison. The new office building is expected to be constructed at a cost of $2.2 million and will be located directly east of the technical center. The technical center will provide new research facilities and office space for the company's research and development and applications technology staffs.

The company also expressed excitement about the planned upgrades to the facility in Onaga, stating that, "this project should position our company very well for future growth opportunities in the area of eco-friendly bio-based and biodegradable products." Acquired by MGPI last month, the 23,000 square foot facility was used by the previous owner, Onaga Composite LLC, to produce wood composite resins for use in the manufacture of extruded decking and fence materials.

Upgrades will primarily consist of the installation of new equipment to facilitate the production of the company's starch and protein-based biopolymers, which can be used in the manufacturing of both 100 percent degradable and partially degradable plastic-like products, such as disposable cutlery, golf tees and a variety of other items. The upgrades are expected to be completed by spring, 2006.

"Our acquisition of the Onaga plant gives us a dual opportunity to fulfill our mission of providing product solutions derived from natural sources," said Michael Trautschold, executive vice president of marketing and sales. "The facility is the ideal springboard from which we can launch our presence in the established wood composite industry while also providing us with the infrastructure for the production of fully and partially degradable biopolymers. We believe the market for these types of materials will grow substantially in coming years as demand for alternatives to traditional plastics increases."