CHS and Aurora Cooperative to build grain shuttle loader in Nebraska
ST. PAUL, Minn., May 9, 2013 /PRNewswire/ -- Today CHS Inc. (NASDAQ: CHSCP), an energy grains and foods company and the nation's leading farmer-owned cooperative, and the Aurora Cooperative, a leading grain marketer and agricultural supplier throughout Nebraska and the U.S., announced formation of a limited liability company (LLC) to build and operate a high-speed shuttle loading facility near Superior, Nebraska.
The new entity, Superior East, LLC expects to begin construction immediately and be completed in about 12 months. With a storage capacity of 1,250,000 bushels, the new grain facility will include a 120-car capacity circle track on the BNSF line moving corn, soybeans and hard red winter wheat to markets west and south, including Mexico. Additionally, the location will provide a grain ground piling system, as well as 10,000-ton liquid fertilizer storage. The site has ample room to expand both grain and fertilizer capacity.
Superior East, LLC was formed under the recently introduced CHS Partnered Equity Program. This first-of-its-kind program allows CHS owners to unlock a portion of their equity in CHS to provide capital for an expansion project. Cooperatives participating in the program use a portion of their CHS equity as a contribution to a venture with CHS focused on helping their cooperative grow. Eligible projects include shuttle loaders, fertilizer hub plants, energy assets and other growth opportunities.
"By using a portion of our CHS equity along with additional CHS capital to build a next-generation ag multiplex, we will be able to provide the Aurora Cooperative farmer owners in southern Nebraska and northern Kansas additional access to world grain and fertilizer markets via the BNSF rail system," said George Hohwieler, Aurora Cooperative President and CEO. "This significant expansion fully aligns with our vision to be a financially strong, innovative, and locally-owned agri-business," said Hohwieler.
"We are excited about the opportunity to come together with such a strong partner with the CHS Partnered Equity Program," said Lynden Johnson, Business Solutions executive vice president, CHS. "The goal of the program is to help our owners grow by providing strong cooperatives like Aurora the opportunity to unlock a portion of their equity in CHS for projects that directly serve their farmer owners. We look forward to exploring other projects that would benefit our owners in Nebraska and other states in CHS trade area," said Johnson.
Superior East, LLC is a 50/50 joint venture with a governing board comprised of representatives from both CHS and the Aurora Cooperative. The multiplex will be operated by the Aurora Cooperative.
Formed in 1908, the Aurora Cooperative (www.auroracoop.com ) is a premier, multi-purpose agricultural cooperative providing service and expertise in grain, agronomy, animal nutrition and energy. Headquartered in Aurora, the cooperative serves customers and patrons across Nebraska and in surrounding states.
CHS Inc. (www.chsinc.com) is a leading global agribusiness owned by farmers, ranchers and cooperatives across the United States. Diversified in energy, grains and foods, CHS is committed to helping its customers, farmer-owners and other stakeholders grow their businesses through its domestic and global operations. CHS, a Fortune 100 company, supplies energy, crop nutrients, grain marketing services, livestock feed, food and food ingredients, along with business solutions including insurance, financial and risk management services. The company operates petroleum refineries/pipelines and manufactures, markets and distributes Cenex® brand refined fuels, lubricants, propane and renewable energy products.
This document contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 that are based on management's current expectations and assumptions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements. The company undertakes no obligations to publicly revise any forward-looking statements to reflect future events or circumstances. For a discussion of additional factors that may materially affect management's estimates and predictions, please view the CHS Inc. annual report filed on Form 10-K for the year ended Aug. 31, 2012, which can be found on the Securities and Exchange Commission web site (www.sec.gov) or on the CHS web site www.chsinc.com.
SOURCE CHS Inc.