Centennial, Colo., June 13 - Penford Corporation announced today that the Cedar Rapids, IA plant owned and operated by its principal subsidiary, Penford Products Co., has been temporarily shut down due to record flooding of the Cedar River and mandatory evacuation of the plant and surrounding areas. The plant produces starch and ethanol products and accounts for approximately 55% of the revenues of Penford Corporation.
The facility was shut down on June 12, 2008 and all employees safely evacuated. Management personnel have been relocated to a temporary off-site location and are actively responding to developments.
The Company expects that operations at the plant will resume after the flooding subsides, a damage assessment is made and any necessary repairs are completed. The Company is not presently able to estimate when that will occur.
The Company is also currently unable to provide an estimate of damage to the plant. The Company maintains flood and property damage, including business interruption, insurance coverage applicable to the plant and has notified its insurers.
The Company is notifying customers and will be actively working with them to minimize supply disruptions.