BIOKYOWA TO EXPAND CAPE PLANT

BioKyowa Inc. Monday announced plans for a second major expansion of its plant in the Nash Road industrial area.

"The demand for our agricultural product -- feed-grain amino acid L-lysine -- is increasing," Satoru Akiyama, president of BioKyowa, said during a press conference at the Cape Girardeau Chamber of Commerce. "In order to fill these needs, we need to expand the Cape Girardeau plant."

BioKyowa also announced it will construct facilities at the plant to manufacture two new feed-grade amino acids: L-theonine and L-tryptophan.

"The new facilities will bring our capacity up to 25,000 metric tons a year for L-lysine," said Akiyama. The combined capacity for the two new feed-grade products will be about 5,000 metric tons a year.

A large crowd was on hand to hear the plans. They included state Sen. Peter Kinder; state Reps. Mary Kasten and David Schwab; Chamber of Commerce president John Mehner; and D. Mitch Robinson, executive director of the Cape Girardeau Area Industrial Recruitment Association, who conducted the meeting and served as master of ceremonies.

The $35 million project calls for five buildings with completion expected in mid 1999. Plans include a 10,000-square-foot and 15,000-square-foot processing plant, a 13,000-square-foot warehouse extension, and two other buildings with a combined 10,000 square feet.

"Adding the total together, we're looking at about 48,000 square feet in the expansion plans," said William Hinkley, plant manager at BioKyowa since November.

The plans were outlined in a directive received from BioKyowa's parent company, Kyowa Hakko Kogyo Co. Ltd., headquartered in Tokyo.

"Expansion plans and new facilities were approved by Kyowa Hakko in late December," said Hinkley.

Kyowa Hakko Kogyo coordinates its worldwide feed additive business through its four major production and development bases in the United States, where the business is known as BioKyowa; Mexico, where it is known as Fermex; Hungary, where it is known as Agroferm; and Asia, where it is known as Kyowa Hakko H.K. Co.

Research, development and application research is further enhanced by the company's subsidiary, Nutri-Quest Inc., in Chesterfield, a suburb of St. Louis.

Monday's announcement marked the second major expansion for BioKyowa, which started operations here in 1982 with a $25 million plant and 70 employees.

Actually, the company underwent two previous expansions. Another expansion was necessary at the BioKyowa power house to provide additional equipment that provides more power to the production facility.

The first major expansion, completed in 1991, involved a $15 million project that doubled production. It involved an 11,000-square-foot warehouse and expansion of production facilities. That expansion brought the plant's work force to 100.

The latest expansion will result in from 40 to 60 new bio-technical, electrical and mechanical workers.

"This is another proud day for Cape Girardeau and the area," said Cape Girardeau Mayor Al Spradling III. "We're fortunate to have such fine companies as BioKyowa."

Spradling said BioKyowa is an important player in the economics of the area.

"We're happy to see this expansion for Cape Girardeau County," said Cape Girardeau County Commissioner Gerald W. Jones. "We're an active supporter of new job growth."

Cape Girardeau will receive a $445,300 industrial infrastructure grant on behalf of BioKyowa from the Community Development Block Grant program for construction of a rail spur necessary for the expansion.

BioKyowa supports the Area Wide United Way and Southeast Missouri State University Foundation. It recently provided a $25,000 grant to the new Cape Girardeau Vo-Tech School.

The company is a former recipient of the Cape Girardeau Chamber of Commerce's Commitment to Excellence Award and was named Industry of the Year. In 1990, the company was selected a winner in the annual Missouri Society of Professional Engineers-Governor's New Product Award program.