WINNIPEG - Agricore United will invest $4.0 million in a new 100,000 ton dairy mineral manufacturing plant at Hi-Pro Feeds located in Friona, Texas and C$5.2 million in a new 60,000 metric ton specialty oat processing plant at its existing seed cleaning plant in Camrose, Alberta, a release from the company said.
"With our recent refinancing, and five straight years of cash flow growth, we have the financial flexibility to continue to diversify into value-added downstream processing." Brian Hayward, Chief Executive Officer, Agricore United, said.
The dairy industry in New Mexico and the Texas Panhandle market area is experiencing significant growth. The mineral plant expansion, expected to be completed in the fall of 2007, will free production capacity at the existing
Friona feed mill and allow Hi-Pro to participate in industry growth and secure additional market share, the release said.
The new oat plant will begin processing in the spring of 2008 and will replace Agricore United's existing 35,000 ton Edmonton oat plant.
The new plant, which also includes a retrofit of an existing forage seed cleaning plant, will increase Agricore United's production capacity of specialty oats processing and allow it to respond to growing market demands, the release said.