PGP International to set up ingredient manufacturing facility in US

PGP International plans to set up a $17.2m manufacturing and distribution facility in Indiana, US, as part of its plan to boost production of speciality food ingredients and additives.

The 70,000ft² facility, which will be located in Vanderburgh Industrial Park, Evansville, will produce two products – rice crisps used in cereal, nutritional and energy bars, and an ingredient that is used in speciality animal feed.

PGP International noted that it chose Vanderburgh Industrial Park to set up the plant due to factors such as ease of transportation, a shovel-ready site, and a pool of skilled potential employees with manufacturing experience.

The facility will be operational in summer 2013 and is expected to create 41 new jobs.

PGP International plans to begin hiring production and support workers for the new facility later in 2012.

The Indiana Economic Development Corporation, the state’s job-creation agency, has offered the company nearly $320,000 in conditional tax credits and up to $105,000 in training grants based on job creation targets, while Vanderburgh County has approved additional property tax abatement.

The new facility marks the company’s fifth manufacturing plant in the US; it currently has facilities in Minnesota, Wisconsin, California and Missouri.

California-based PGP International, a part of ABF Ingredients, has two units – a grain division that produces a wide range of protein crisps including soy, rice, pea and whey, rice flours and blends, and a dairy division that produces whey protein-based ingredients including concentrates, isolates, hydrolysates and lactose.

ABF Ingredients is part of British multinational food processing company Associated British Foods, which specialises in high-value ingredients for both food and non-food segments.