CHS Inc., an energy grains and foods company and the United States' leading farmer-owned cooperative, and the
Aurora Cooperative,
a leading grain marketer and agricultural supplier throughout Nebraska
and the U.S., announced formation of a limited liability company (LLC)
to build and operate a high-speed shuttle loading facility near
Superior, Nebraska.
The new entity, Superior East, LLC expects to begin
construction immediately and be completed in about 12 months. With a
storage capacity of 1,250,000 bushels, the new grain facility will
include a 120-car capacity circle track on the BNSF line moving corn,
soybeans and hard red winter wheat to markets west and south, including
Mexico. Additionally, the location will provide a grain ground piling
system, as well as 10,000-ton liquid fertiliser storage. The site has
ample room to expand both grain and fertilizer capacity.
Superior East, LLC was formed under the recently introduced CHS
Partnered Equity Program. This first-of-its-kind program allows CHS
owners to unlock a portion of their equity in CHS to provide capital for
an expansion project. Cooperatives participating in the program use a
portion of their CHS equity as a contribution to a venture with CHS
focused on helping their cooperative grow. Eligible projects include
shuttle loaders, fertilizer hub plants, energy assets and other growth
opportunities.
"By using a portion of our CHS equity along with additional CHS
capital to build a next-generation ag multiplex, we will be able to
provide the Aurora Cooperative farmer owners in southern Nebraska and
northern Kansas additional access to world grain and fertilizer markets
via the BNSF rail system," said George Hohwieler, Aurora Cooperative
President and CEO. "This significant expansion fully aligns with our
vision to be a financially strong, innovative, and locally-owned
agri-business," said Hohwieler.
"We are excited about the opportunity to come together with such a
strong partner with the CHS Partnered Equity Program," said Lynden
Johnson, Business Solutions executive vice president, CHS. "The goal of
the program is to help our owners grow by providing strong cooperatives
like Aurora the opportunity to unlock a portion of their equity in CHS
for projects that directly serve their farmer owners. We look forward to
exploring other projects that would benefit our owners in Nebraska and
other states in CHS trade area," said Johnson.
Superior East, LLC is a 50/50 joint venture with a governing board
comprised of representatives from both CHS and the Aurora Cooperative.
The multiplex will be operated by the Aurora Cooperative.
Formed in 1908, the
Aurora Cooperative is a premier, multi-purpose agricultural cooperative providing
service and expertise in grain, agronomy, animal nutrition and energy.
Headquartered in Aurora, the cooperative serves customers and patrons
across Nebraska and in surrounding states.
CHS Inc.
is a leading global agribusiness owned by farmers, ranchers and
cooperatives across the United States. Diversified in energy, grains and
foods, CHS is committed to helping its customers, farmer-owners and
other stakeholders grow their businesses through its domestic and global
operations. CHS, a Fortune 100 company, supplies energy, crop
nutrients, grain marketing services, livestock feed, food and food
ingredients, along with business solutions including insurance,
financial and risk management services. The company operates petroleum
refineries/pipelines and manufactures, markets and distributes Cenex
® brand refined fuels, lubricants, propane and renewable energy products.
This document contains forward-looking statements within the meaning
of The Private Securities Litigation Reform Act of 1995 that are based
on management's current expectations and assumptions. These
forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially from
the potential results discussed in the forward-looking statements. The
company undertakes no obligations to publicly revise any forward-looking
statements to reflect future events or circumstances. For a discussion
of additional factors that may materially affect management's estimates
and predictions, please view the CHS Inc. annual report filed on Form
10-K for the year ended Aug. 31, 2012, which can be found on the
Securities and Exchange Commission website or on the
CHS website.