Highland Pellets Ramps Up Production at New Arkansas Pellet Mill

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Researched by Industrial Info Resources (Sugar Land, Texas)--Highland Pellet LLC (Boston, Massachusetts) is preparing to start the New Year by ramping up production capacity at its new fuel pellet mill in Pine Bluff, Arkansas. Earlier this year, Highland began mobilizing heavy excavation equipment to the Jefferson County Industrial Park in Pine Bluff, to pick up where it left off after work stoppage stalled development in 2014.

Commissioning and testing of the $229 million pellet mill's four production lines has been under way since the middle of November, and full production is expected by January. At full capacity, the mill will churn out some 600,000 metric tons per year of fuel pellets and be one of the largest mills of its kind, behind rival Enviva's (Bethesda, Maryland) pellet mill in Cottondale, Florida.

Astec Industries Incorporated (NASDAQ:ASTE) (Chattanooga, Tennessee) installed production lines, and general contractor Wagner Construction (International Falls, Minnesota), whose president, Dennis Wagner, also sits on the advisory board for Highland, constructed the estimated 500,000-square-foot building.

The finished pellets will be transported via Norfolk Southern rail to marine export terminals in the Southeastern U.S., and shipped to the Drax biomass power plant in the U.K., under a 10-year supply agreement. Highland is looking into additional fuel pellet mill capacity and has future plans to construct new mills in Georgia, Mississippi and a second mill in Arkansas.

In mid-September, Highland held a ribbon-cutting ceremony to celebrate the investment, economic development and job creation that comes with a new manufacturing facility. Company founder Tom Reilley, along with Arkansas Governor Asa Hutchinson, were on hand for the event, along with Lou Ann Nisbett, the chief executive officer of the Jefferson County Economic Development Alliance.

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