:. Food Industry News


USA: Owens Foods to Break Ground On Sulphur Springs Plant Expansion

Source: Bob Evans Farms Inc.
20/06/2008

Sulphur Springs, Texas, June 19, 2008 - Owens Foods has announced a plan to expand its Sulphur Springs, Texas, food production plant to nearly double its current size.

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The company is expected to break ground on the expansion on June 23, 2008. The new construction will add an additional 50,000 square feet to the existing 52,777-square-foot facility. The expansion represents an additional $16 million investment for the company.

The Owens plant currently serves as a sandwich production facility for Owens Foods and its parent company, Bob Evans Farms. Owens' and Bob Evans' popular line of convenience food items for retail, foodservice and convenience store distribution are produced at the plant. "This expansion is essential to meeting the increasing demand by our customers for our popular convenience sandwich items, including our breakfast sandwiches, fully-cooked sausage and breakfast tacos," said Owens Foods Vice President of Operations Phil Chapman. "We currently have product distribution in 49 states, and expect to ship 28 million pounds of product annually when we are at full capacity in this expanded facility."

The additional capacity will allow for more production area, as well as storage, warehouse and training room areas. When construction is complete, the company expects to add to its work force as well, said Chapman. "We plan to hire 60 additional employees soon after opening, and another 60 as production expands in the new facility."

Chapman noted that Owens Foods and Bob Evans Farms have purchased nine additional acres at the site, which will bring the company's total acreage at the Sulphur Springs plant to 22. This may allow for further growth in the future, Chapman said.

Because the new area will be connected by a hallway to the existing building, the company anticipates no interruption in production during the construction process. The facility is expected to be complete by May, 2009. Lincoln Construction will serve as the general contractor on the site.

"The success of this operation is a testament to the partnership we have felt with the community of Sulphur Springs," Chapman said. "We are proud of our plant management team's involvement in this community and are grateful for the positive, enthusiastic response we have received from the people, the government and city management of Sulphur Springs. This project would not have been possible without assistance from the city government of Sulphur Springs, the Economic Development Council, from Hopkins County, and from the Hopkins County Memorial Hospital board. We would like to thank these officials for their support of our business in this area."

Owens first opened the plant in November, 2003, after purchasing and renovating the facility. In addition to this facility, Owens and Bob Evans have food production plants in Richardson, Texas; Bidwell, Springfield and Xenia, Ohio; Hillsdale, Mich.; and Galva, Ill.



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