Houston, Jan. 3 - Riviana Foods Inc. announced today that it will construct a new 400,000 square foot, state-of-the-art rice processing and packaging plant and on-site warehousing/distribution center on a 31-acre site located adjacent to its packaging facility in Memphis, Tennessee. Construction will begin in the second quarter of 2008 with final completion anticipated to occur in mid-2010.
Over the two-year time period, production and packaging at the Houston plant will be phased out and transferred to the new Memphis facility. At the end of this transition period, the Houston plant, which includes the Instant and Packaging Plants, Warehouse and Technical Center located at 1702 Taylor Street, will then be closed and operations will cease. Currently, approximately 250 employees work at the Houston facility. Riviana's headquarters will remain in Houston at its Allen Parkway location.
"Development of this new facility is an important step in our ongoing effort to transform Riviana into the world's most efficient, technically advanced rice company," said Bastiaan de Zeeuw, Riviana's President and Chief Executive Officer. "The decision to close the Houston manufacturing and packaging facility was very difficult, but unfortunately, is necessary for the Company to grow and meet competitive pressures, invest in its brands and launch new products."
Mr. de Zeeuw noted that the consolidation of volumes into a large, state-of-the-art facility will allow the Company to significantly enhance its processing, packing, storage and distribution capabilities and will provide important economies of scale. The choice of Memphis for this facility was driven by the availability of land next to Riviana's existing operations, comparative cost of land, the proximity to the major rice growing areas, favorable freight rates, as well as tax and other incentives.
Based in Houston, Texas, Riviana Foods Inc. is one of the largest processors, marketers and distributors of branded and private label rice products in the United States. Its principal brands include Mahatma(R), Carolina(R), Success(R), Minute(R) and Gourmet House(R).
Riviana Foods is a wholly-owned subsidiary of Ebro Puleva, S.A., the leading Spanish food group, with interests in dairy, sugar, rice and pasta products. It is the world leader in the rice sector and the world's number 2 pasta manufacturer.
Ebro Puleva's other subsidiary in the United States, New World Pasta Company, has such well-known brands as Healthy Harvest(R), Ronzoni(R), San Giorgio(R), Creamette(R), American Beauty(R), Skinner(R), Prince(R), Catelli(R) and Lancia(R).