New Dairy and Cheese Plant to Break Ground in Hugoton, Kan.

HUGOTON, Kan. – Kansas Dairy Ingredients today announced its plans to build a dairy ingredient and cheese plant in Hugoton, Kansas. The company will start construction on the facility next month and begin phase I operation at the middle of the fourth quarter in 2012. The facility will be positioned to expand in 2013 to add cheese production. Kansas Dairy Ingredients will invest $20 million plus over the next 18 months in Hugoton.

“We want to thank the great people of western Kansas, Governor Brownback, and his state team in Topeka for their support and interest. We also want to thank Springfield, Missouri based banks that made this possible, Great Southern Bank and Springfield First Community Bank,” said Brent Davis, CEO, Kansas Dairy Ingredients.

When the facility first opens, Kansas Dairy Ingredients plans to begin processing approximately 1 million pounds of milk per day to produce fractionated dairy ingredients. As production builds, the company anticipates eventually processing up to 2.5 million pounds of milk per day by the end of 2013. The company plans to build additional capacity to produce cheese and other dry milk ingredients. Kansas Dairy Ingredients expects to bring 60 jobs to the area in its first two years. It also expects to create about 150 temporary construction-related jobs.

“We are very excited to announce this project in Hugoton, Kansas, and the effort of many individuals and organizations should be applauded. We would like to thank the following organizations: J.E. Dunn Construction, Tetra Pak, E.A. Bonelli and Associates, Filtration Engineering, and our milk partners,” said Tim Gomez, chief operating officer, Kansas Dairy Ingredients.

State and local officials welcomed the news of the company’s arrival in Hugoton.

“I want to welcome Kansas Dairy Ingredients to southwest Kansas,” said Gov. Sam Brownback. “This project will create good-paying jobs for Stevens County and has the potential to spur significant, additional job creation in the future.”

“This is exciting news for Hugoton and the entire region,” said Kansas Commerce Secretary Pat George. “Kansas Dairy Ingredients has made a commitment to southwest Kansas with quality jobs and the prospect of additional, long-term growth. This is a great boost to the dairy industry in Kansas.”

“This significant investment is a testament to the hard-working people of southwest Kansas,” said Kansas Senate President Steve Morris. “I am especially proud to see this industry and these jobs coming to my hometown of Hugoton. I welcome Kansas Dairy Ingredients to our corner of the state—and the boost this plant will provide to our economy for years to come.”

“We are extremely excited to have this new processing plant coming to our county,” said Stevens County Economic Development Director Neal Gillespie. “It will provide good jobs, diversify our economy and add to our tax base. We have long believed that the dairy industry is a perfect fit for western Kansas. A processing plant will be a catalyst for the continued growth of this industry that is so beneficial to our local economies.”

Kansas Dairy Ingredients, currently based in Missouri, will locate its business operations offices in Kansas City, Kan., and at the Hugoton site.