Crailar Technologies To Acquire European Wet Processing Facility
The facility can produce more than 250,000 pounds of CRAiLAR® Flax fiber weekly, and its capacity can be expanded. In exchange for the facility, Crailar Technologies would retire approximately $1.2 million of the vendor's debt over three years. Crailar also would sign a 10-year lease with the option to purchase the building housing the facility, with a renewal option for another 10 years.
"Acquisition of this facility would accelerate our production timeline by six to nine months; eliminate construction risks inherent with a 'green field' project; and substantially reduce the capital required to achieve one million pounds per week of capacity," said Ken Barker, CEO, Crailar Technologies Inc. "The plant is also is located in an area known for flax growing excellence, thereby providing an abundant source of feedstock, and ties in perfectly with our European flax fiber sourcing initiative."
Last year, the company started Crailar production at its first fully integrated commercial-scale facility in Pamplico, S.C. (See " Crailar Set To Start Up Pamplico Processing Facility, TextileWorld.com, November/December 2012).
September 10, 2013