Mankato, MN -- Agristrand Biocomposites, LLC has acquired a Mankato, MN, production facility for the manufacturing and marketing of composite particle board and door core products made from annually renewable soy straw. The 40 million sqft annual production capacity plant was originally constructed in 1998 by Phenix Biocomposites, LLC. Agristrand will make considerable upgrades and have the plant back into production late Q1 2012. The facility will be owned and operated by Agristrand Mankato, LLC which has obtained an exclusive world-wide intellectual property license from Agristrand Biocomposites, LLC.
Agristrand will be producing sustainable, LEED contributing, non-formaldehyde particle board and door core products from soy straw, a by-product from Midwest annual soybean production. At full capacity, the plant will utilize the soy straw from roughly 25,000 acres of soybean growers acres in southern Minnesota and northern Iowa and have about 50 employees. In an environment of rising costs for wood based composite products the abundantly available “eco-friendly” soy fiber offers a unique “green” value proposition in the market.
“We are excited about our partnership with local farmer producers as both shareholders and fiber suppliers to the plant” states Tom Neel, president and CEO. “We are pleased with the value-added component in the harvest of soy straw for farmers, as well as the market potential for our environmentally friendly products to the building trade.”
LWBJ Investment Services, LLC served as the investment banker for Agristrand throughout the transaction and successfully closed the $10.25 million capital raise.
Source: Agristrand Biocomposites, LLC
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