Marrone Bio Innovations Begins Production at Michigan Plant
BANGOR (WWJ) – Davis, Calif.-based Marrone Bio Innovations Inc. (Nasdaq: MBII) has begun production of a bioinsecticide called Grandevo at a plant in Bangor, west of Kalamazoo.
This is the company’s first production of a fermentation product at the Bangor plant, which the company acquired in July 2012. It’s been under renovation since.
“Producing this first batch of Grandevo is an important milestone in meeting the margin objectives we have set for 2014,” said Hector Absi, senior vice president of commercial operations for MBI. “As we expect to continue delivering double digit sales growth of our existing products and plan for new product introductions, this new manufacturing capability will allow faster scale up, make us much more responsive to surges in market demand and more effective in managing our production costs.”
The company plans to expand the plant in multiple phases with an anticipated total capital expenditure of $32 million. Installation of the first of three fermentation tanks, and the construction of a dedicated building to house them, marks the completion of phase 1A of the project.
Future phases will include production of the company’s Regalia biofungicide, as well as increasing the capacity of the utilities and installing larger fermenters that will accommodate production of multiple products at higher volumes.
Marrone produces bio-based pest management and plant health products for the agriculture, turf and ornamental, and water treatment markets. More at http://www.marronebio.com .