MHG’s facility build-out to enter final stages of construction – on schedule

Bioplastics manufacturer MHG has a capacity problem. Its current facility operates around the clock, yet: ""Our production pipeline is already overloaded by 400%, and we need to ramp facilities as a matter of urgency in order to facilitate our customers," said CEO Paul Pereira. "Several of our Fortune 100 customers are gearing up for increased volumes of biodegradable resin pellets to replace their petro-plastic products."

That's not something you hear every day from a bioplastics manufacturer. MHG, however, is not an every day bioplastics manufacturer. MHG, headquartered in Georgia, U.S., is wholly vertically integrated into the supply chain, which makes it the only biopolymer company in the world that can control the process from seed, through planting and harvesting, crushing, refining, solution and fermentation, final proprietary extrusion into polymer pellets. The aim of the company is very simple: to produce renewable, biodegradable plastic material at a competitive cost. "Green does not mean more expensive," says the company. The time has now arrived to prove the point.

Which is why MHG - the holding company of PHA producer Meredian - decided last year to hire Engineering and Construction Group Perry-McCall to design and build the new $3.5 million manufacturing facility. And this week, MHG, will make their second payment to Perry McCall, which will allow Perry McCall to begin the final stages of the PHA facility build-out.

The final phase of the build-out will begin with ordering the long lead time equipment, followed by the piping, valves and sensors that are necessary to get the first PHA reactor on line making product. This equipment will yield approximately 6mm lbs. of polymer each year. Additionally, Perry McCall will get extruders ready as part of the build-out, and fermenters will be completed, so MHG will be ready to produce large quantities of PHA.

The build-out of the facility is scheduled to be finished in mid 2015 in time for the next canola harvest. The completion of the facility will coincide with the first shipments to customers who have contracts with MHG.

"We are on time for the order of 'critical path' items, so that they dovetail with the inception of our facility," said Pereira. "This is a very exciting phase in MHG's history, as we introduce products into the market that will revolutionize the way we view waste."

All told, it's already been a pretty exciting year for MGH. Next to, in the summer, the merger between Meredian, Inc. and DaniMer, which resulted in the formation of MGH,  the company has also achieved a number of important milestones, including boosting their funding at the China International Fair for Investment and Trade far beyond the initial $125 million hoped for; partnering with the global provider Tate and Lyle to demonstrate MGH's PHA products ability to be manufactured on a mass scale; and receiving four certifications and two statements from Vinçotte International confirming their PHA formula is completely compostable and biodegradable in six different mediums.

In addition, MHG has received U.S. Food and Drug Administration approval for food substance contact notification. This approval certifies that the polyhydroxyalkanoate (PHA) biopolymers engineered by Meredian, Inc. to which the approval relates are entirely safe to use as food containers and storage for the general public.

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