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S&W Seed Company completes construction phase of new Australian packaging facility


Keith, Australia and Fresno, California, USA
September 22, 2015

S&W Seed Company (Nasdaq: SANW) today announced the completion of the construction phase of a new seed packaging facility located in Keith, South Australia, the heart of the alfalfa seed production area of Australia. The state-of-the-art facility will allow S&W to meet the growth of the company's expanding seed production capabilities in the country, including the continued introduction of the company's elite, proprietary varieties.

Dennis Jury, chief operating officer of S&W Seed Company, commented, "S&W is looking to dramatically expand the contracted production of both its Australian-based and U.S.-based varieties in Australia. The expanded capabilities of the facility will allow for a reduction in handling and packaging costs, which should provide an opportunity for expanded gross margins in future periods, as well as more efficient processing of seed orders to meet our expanding customer base around the world. Additionally, the facility will support our program of delivering end-to-end solutions, including seed treatments and enhancements. We look forward to working with growers throughout Australia to expand the market for contracted alfalfa seed production in the years to come."

Mark Grewal, chief executive officer of S&W Seed Company, commented, "Australia is critical to our long-term plans to meet the global needs for expanded alfalfa seed production. The growers in Australia are some of the best in the world at producing high-quality seed, and the ability to partner with them through a new state-of-the-art facility in the heart of the alfalfa seed region will only strengthen this partnership. We are excited for the future opportunities of S&W in Australia."

The Company expects the facility to be operational by the end of 2015, well ahead of the 2016 harvest and shipping periods. Key to the success of the facility was a grant from the South Australian Government in support of regional development received by S&W's Australian-based subsidiary, Seed Genetics International Pty Ltd., as well as building and equipment financing provided by National Australia Bank.



More news from: S&W Seed Company


Website: http://www.swseedco.com/

Published: September 22, 2015

 
 

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