MGP Ingredients Decrease Protein and Starch Production

November 6, 2008

MGP Ingredients (Atchison, KS) will reduce wheat and starch production at its facility in Atchison, effective Nov. 12. As a result, MGP will discontinue manufacturing operations in Pekin, Illinois, the company said.

MGP Ingredients (Atchison, KS) will reduce wheat and starch production at its facility in Atchison, effective Nov. 12. As a result, MGP will discontinue manufacturing operations in Pekin, Illinois, the company said.

“We have been very straightforward about our strategy to strengthen MGP Ingredients by becoming a more customer-centric, and therefore less production-driven supplier of value-added products ,” said Tim Newkirk, MGP CEO.

“Our decision to exit our protein and starch operations in Pekin and concentrate our efforts on the production of value-added ingredient solutions at our Atchison, Kansas plant represents another critical step toward achieving this goal.”

The closure of operations will result in lay-offs and early retirement offers, the company said.
ConAgra Mills will supply the company’s protein and starch ingredients, MGP previously announced on October 20.

“Although recent economic conditions have caused us to accelerate some of these decisions, they all stem from an exhaustive business analysis spanning our entire enterprise...even though we anticipate an operating loss for the year, every facet of our organization will aim to return the company to profitable operations in the fourth quarter while ensuring proper alignment with our strategic focus going forward,” Newkirk added.