MGP Ingredients last week announced the planned closure of its industrial alcohol distillery expected in January 2024. The facility in Atchison, Kansas, produces grain neutral spirits, industrial alcohol products and related co-products.
The decision to close this distillery is consistent with the company’s plan to address profitability headwinds associated within the sector. MGP Ingredients will continue to operate and invest in its Ingredient Solutions business located in Atchison, Kansas, including the previously announced $16.7 million-dollar texturized protein facility scheduled to be completed by the end of the year. The company will also continue to operate and invest in its Lawrenceburg, Indiana, distillery operations.
MGP President and CEO David Colo says, “The additional supply of grain neutral spirits and industrial alcohol that has entered the market during the past few years has had a meaningful and structural impact on the market.”
The company also cited the increase in local corn basis costs that reduced profitability.
