Hills Pet Nutrition will build a new plant in Emporia
Hill’s Pet Nutrition announced this morning it would build a 300,000 square-foot plant in Emporia, the third pet food plant to locate in Emporia.
The dry pet food plant brings with it more than 100 manufacturing jobs and will be located on an 80-acre site just south of Norfolk Iron & Metal and the new REG biodiesel plant in eastern Emporia. Emporia beat out several other sites, including Hill’s headquarters city of Topeka, to land the plant.
According to the Regional Development Association of East Central Kansas, Hill’s would be the 11th-largest private employer in town and 16th-largest overall. Kent Heermann, executive director of the RDA, said the company would put about $100 million into the plant.
“We’re real excited about the project,” Heermann said. “Our team worked really hard on putting together this project in a short period of time.”
He and RDA President Jeff Longbine credited the cooperation of state and local groups and the fact that Emporia had a suitable site more or less ready to go, among other factors.
The company is best known for its Science Diet and Prescription Diet pet foods.
“Kansas has been home to Hill’s for more than 60 years and we look forward to expanding our presence here to support the continuing growth of our business,” company president Justin Skala said in a prepared statement. “This was a rigorous year-long process and we greatly appreciate the assistance we received from state and local officials.”
Overall, the company said, more than a dozen sites were considered. Hill’s will continue to operate its global headquarters, pet nutrition center and canned-food manufacturing plant in Topeka, where it employs 850 people.
The Emporia land still needs to be rezoned for the industry, a move that will be discussed by the Metropolitan Area Planning Commission on July 24. If approved, the Hill’s plant would be built just a short distance east of Canadian-owned Menu Foods Midwest, which opened its Emporia plant in 1998.
The proposed site includes farmland owned by Jim and Sharon Woods, which Emporia Enterprises has an option to buy, according to Heermann.
In addition to Hill’s and Menu, Emporia is also home to Emporia Pet Products, the former Safeway pet food plant. That plant was taken over by American Nutrition in April.
The Legislature passed a bill earlier this year, Senate Bill 240, to try to keep a new Hill’s plant in the state. The bill offers an income tax break to manufacturers that locate in Kansas by the end of 2009 if they invest at least $100 million in a plant, employ at least 100 people and pay better than average wages. Gov. Kathleen Sebelius signed the bill on March 20.
The move was designed to make Kansas more competitive with surrounding states. The bill was supported by Hill’s and the Topeka chamber of commerce.
“If our community is selected as the site for this new facility, we will begin the reversal of bad news our community recently received with the closure of the Payless Distribution Center and the loss of 550 jobs,” Topeka Sen. Anthony Hensley said in arguing for the bill.
The Hill’s statement said SB 240 was an important factor in the company’s decision.
Other sites in the running included Gardner, Ottawa and Harrisonville, Mo.
Hill’s Packing Co. began producing canned dog and cat food in 1935 but Hill’s Pet Nutrition got its start in 1943, when veterinarian Mark Morris put a guide dog on a special diet to treat her kidney problems. The company began by selling its pet food in specialty stores, then branched out into other pet-care products.
It remained little-known until Colgate-Palmolive bought the company in 1976. After a slow start, Hill’s began working with the veterinary community to sell its Science Diet and Prescription Diet brands. By 1984, sales had topped $110 million. By the 1990s, Hill’s was working on expanding its international presence.
Hill’s reported $1.66 billion in sales last year, a 9 percent increase from 2005.
Its parent company, Colgate-Palmolive, is No. 200 on the Fortune 500. Last year, Colgate reported worldwide sales of $12.237 billion and a net income of $1.353 billion.
“We are extremely happy that Hill’s Pet Nutrition has selected Emporia for its new facility,” Longbine said. “This valuable expansion will be a huge benefit for Hill’s, Emporia and the state of Kansas.”
An incentive package for the plant will be brought forward at a later date for the city commission’s consideration.
“All projects are not this successful,” Heermann said. “But every once in a while, it all comes together.”
Renewable Energy Breaks ground for new Biodiesel plant
Renewable Energy Group broke ground on its new Emporia biodiesel plant in a ceremony Tuesday.
Actual construction work will begin in about two weeks, according to Chief Executive Officer Jeff Stroburg. The company expects to have the $70 million plant up and running by September or October of 2008. Once completed, it will be capable of making 60 million gallons of biodiesel fuel a year, using soybean oil supplied by Bunge.
“You can name just about any state in the union and biodiesel from this plant will probably find its way there eventually,” Stroburg told an audience of around 60 people at the ceremony.
The plant will employ about 30 people with an estimated payroll of $1.3 million.
Announcements like this are becoming a habit for both REG and Emporia. Last week, the company announced it was starting construction on a 60-million gallon biodiesel plant near New Orleans. About the same time, Emporia announced it had recruited Hill’s Pet Nutrition to town, with a plant to be built not far from REG.
City Commissioner Bobbie Agler said the recent successes had taken a lot of work from the community and particularly the Regional Development Association of East-Central Kansas, the city’s industrial recruiter.
“You get bites and you can’t land the fish, and then all of a sudden, bang-bang!” Agler said.
The REG plant will be built east of Norfolk Iron and Metal, in southeastern Emporia. Stroburg said the site was ideal, both because of its central location in the Midwest and because of its proximity to the Bunge plant. A pipeline will connect the two plants to provide the soy oil.
“REG has been a market leader in biodiesel,” said Larry Clark, executive vice president of Bunge North America. “We’re going to leverage their experience and our expertise to hopefully improve both companies together and ... the community.”
“The community of Emporia continues to be strong supporters of us and we appreciate it,” he added.
Mayor Julie Johnson said the plant would help Americans take the first small steps toward energy independence, using domestic crops for fuel instead of foreign oil.
REG officials have said there should be no noticeable noise or smell from the plant. What is noticeable, Stroburg said, is the reduction in vehicle emissions by cars that use the fuel.
“If you get behind a city bus burning a 20 percent mix of biodiesel ... it doesn’t burn your eyes and it smells a lot like french fries,” he told the audience at the site, getting a chuckle.
Westar Energy will Build New Power Plant in Lyon County
County Lands New Westar Plant
By Brandy Nance
nance@emporiagazette.com
Westar Energy announced this morning that Lyon County is the site for a new $330 million power plant.
The natural gas-fired combustion turbine peaking power plant will be built near the company's Lang substation, which is about six miles northeast of Emporia, off Road 200, east of Road S.
At a press conference this morning, in the county commission chamber of the Lyon County Courthouse, Westar Energy announced the construction of the plant, which is set to begin in spring 2007. The first phase of the plant, which will be on a 160-acre plot, is scheduled to begin generating electricity in the summer of 2008.
The plant will increase the county's assessed valuation by more than $50 million - 24 percent of the tax revenue. The North Lyon County School District will benefit from this revenue, according to Westar.
The state does allow for property tax exemptions for such projects, so the tax benefit could be somewhd Jim Ludwig, Westar's vice-president of regulatory and public affairs.
During peak construction, the plant will bring about 125 jobs to the county. That will drop to two to six jobs after the plant is operational.
"The new, modern power plants do not require a large staff to run," Ludwig said. He added that while the plant will run only during peak demand times, it will be staffed year-round.
A peaking power plant is intended to operate during Westar Energy's highest customer demand times, primarily in the summer. The plant will produce about half the power generated by the Wolf Creek Nuclear Generating Station, having an initial generating capacity of up to 300 megawatts. Additional capacity will be added in phase two, which is scheduled for completion in 2009, bringing the capacity up to 600 megawatts.
The plant's generating turbines will burn natural gas.
"This plant is a very important part of our plan to meet the increasing needs of our customers in a reliable and cost-effective manner," said Doug Sterbenz, executive vice-president of generation and marketing. "The plant will be a state-of-the art facility and designed to minimize any impact on neighbors and the environment."
A question raised before the press conference began was why choose natural gas instead of coal as fuel.
Karla Olsen, a spokeswoman for Westar said that natural gas is the better alternative since the plant will only run during the summer months, when natural gas is more readily available. Coal is usually used only to fuel base-load plants, which run year-round.
Also, Ludwig said, the site would not support a coal plant.
Beginning in May 2005, Westar hired Burns & McDonnell of Kansas City, Mo., to conduct a comprehensive study for a new peaking plant site. Based on the study, which evaluated several criteria, including the availability of natural gas, environmental impact, transmission access and community support, Lyon County was chosen out of 53 possible locations throughout Kansas.
"We're pleased to have received interest in our new plant from 29 different communities," Ludwig said. "We are grateful for the strong support of the people from this area and the Regional Development Association (RDA) of East Central Kansas have shown for this site."
The RDA is a collaborative partnership among Lyon County, Emporia, Emporia Enterprises and the Emporia Area Chamber of Commerce and Convention & Visitors Bureau.
"The residents of Emporia and parts of Lyon County are fortunate to have Westar Energy as our electrical supplier," said Ray Toso, RDA chairman. "Not only does it provide reliable and affordable electrical service, it is a tremendous asset to this community."
The next step for the site includes re-zoning for heavy industrial use. That request will go before the Lyon County Planning and Appeals Board The property is now zoned agricultural use.
Westar also will need to make an application to the Kansas Department of Health and Environment.