SYMBOL: TSX: AGT
REGINA, Dec. 3, 2013 /CNW/ - Alliance Grain Traders (TSX: AGT) ("AGT") is pleased to announce that it is expanding its Minot, North Dakota pulses ingredient production facility, which is focused on the production of pulses ingredient flours, proteins, starches and fibres with the installation of a second production line that is expected to double that facility's production capacity.
"Operations at our Minot facility are progressing positively. We expect this expansion in production to assist in ramping-up our marketing and commercialization program for our pulse food ingredient business. The facility began testing and production in late June 2013 and the positive momentum of sales and production has continued to build both through our agreement with Cargill as an outlet to move our proteins into the North American petfood industry and through our global sales activities focused on food and feed companies," said Mr. Murad Al-Katib, President and CEO of AGT. "As food and feed companies look for non-GMO, low allergen, high protein and high fibre ingredients or innovative flour and starch ingredients, we feel more and more that pulse based ingredients may fill some of these requirements. Our R&D Centre in Saskatoon has made good progress on technical application development and collaborative research for the food and feed uses of our ingredient platform. Commercial sales opportunities are growing, and with it our scale in this new initiative is building necessitating this expansion," added Mr. Al-Katib.
The new production line is scheduled to be operational in the first quarter of 2014 at an estimated cost of $4 million and is expected to add 35,000 mt of production capacity to AGT's Minot ingredient facility, operating under the AGT Foods banner, bringing the capacity of that facility to 70,000 mt per annum. AGT's Minot facility can also accommodate a further 35,000 mt expansion through a third production line that may be added in the future.
Alliance Grain Traders Inc. Profile
Alliance Grain Traders Inc. (AGT) is a value-added pulse, staple food and ingredient processor for export and domestic markets. Through its offices and processing facilities located in some of the best agricultural growing regions in Canada, the U.S., Turkey, China, Australia and South Africa, merchandising and sales offices in the U.K., the Netherlands and Spain and origination offices in Russia, AGT produces a full range of pulses and specialty crops including lentils, peas, chickpeas, beans and canary seed as well as food ingredients such as pulse flours, proteins, starches and fibres. Through its subsidiaries in Turkey, the Arbel Group, AGT also produces staple foods such as Arbella Pasta, rice, and milled wheat products, including bulgur and semolina.
Certain statements in this press release are forward-looking statements. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by AGT at the time of preparation, may prove to be incorrect. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of AGT (including its operating subsidiaries) to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the actual results of harvests, fluctuations in the price of lentils and other crops, failure of plant, equipment or processes to operate as anticipated, accidents or labour disputes, risks relating to the integration of acquisitions or to international operations, as well as those factors referred to in the section entitled "Risk Factors" in the Annual Information Form of AGT dated February 21, 2013 which is available on SEDAR at www.sedar.com, and which should be reviewed in conjunction with this document. Although AGT has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. AGT expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws.
SOURCE: Alliance Grain Traders Inc.
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