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GrainCorp Significantly Expanding Malt Production at Idaho Facility

GrainCorp has announced it is significantly expanding its malt production capacity at its Great Western Malting operation in Pocatello, Idaho, largely in answer to long-term supply agreements with major customers.

The expansion project at the facility will more than double production, adding 120,000 tons of capacity, bringing total annual malting capacity at the site to 220,000 tons.

Aside from fulfilling supply agreements with existing customers, the increased capacity will enable GrainCorp to increase its capitalization on the growing demand from the North American craft brewing industry.

“Investing in our supply chain, supporting customer growth and positioning ourselves to capture further value within the craft beer sector is perfectly aligned with our focus on building out the more reliable earnings streams within our business,” says Mark Palmquist, chief executive officer, GrainCorp.

Given its geographic location, the Pocatello facility is prime for expansion, with the region having the most reliable source of malting barley in North America, competitive freight and utility costs, and proximity to key markets.

The $75 million project will be funded through existing cash flow and debt facilities spread over fiscal years 2016 and 2017. Construction is expected to begin in the third quarter of 2015 subject to local official approvals, and is scheduled to be completed mid-2017.

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