Riviana breaks ground on 400,000 sq. ft. packing plant

RP news wires, Noria Corporation

On February 22, Riviana Foods Inc. broke ground on its new state-of-the-art rice processing and packaging plant and on-site warehouse and distribution center in Memphis, Tennessee. Due for completion in mid 2010, the new 400,000 square-foot facility is located at 615 E. Bodley Ave.

The 31-acre site is located adjacent to Riviana's existing operations at 2360 Prospect St. The new facility will employ 300 people, an increase of 121 employees.

Bastiaan de Zeeuw, Riviana's president and chief executive officer, noted that this new, larger facility reflects the substantial growth that Riviana has experienced in recent years. "Development of the new facility will help us reach our goal of transforming Riviana into the world's most efficient, technically advanced rice company," he said. "In addition to its central geographic location, this state-of-the-art facility will allow us to reduce our cost for processing, packaging, storage and distribution and will provide important economies of scale. It also represents Riviana's renewed commitment to the Memphis community, and we appreciate their cooperation and support."

Mr. de Zeeuw noted the Memphis plant has been a vital part of the Company's operations since 1965 and that the plant is located in and draws a significant part of its workforce from the designated Memphis Renewal Community. In 2006, the Memphis and Shelby County Industrial Development Board granted the Company a 12-year payment-in-lieu-of-taxes (PILOT) agreement, which was instrumental in Riviana's investment and development of the project.

Riviana Foods has been the industry leader in marketing and processing of consumer rice products since 1911. Today, Riviana leads the branded retail rice market with 22 percent of all retail rice sales volumes.

Packaging and shipping of Riviana's first line brands – Mahatma, Water Maid, Carolina and River rices – are currently handled from the existing Memphis plant. Upon completion of the new facility, Riviana will consolidate operations from its Houston Instant and Packaging Plants, Warehouse and Technical Center to Memphis. This will include Success and Minute, the Company's first line instant rice brands, as well as private label instant rice volumes.

Based in Houston, Texas, Riviana Foods Inc. is one of the largest processors, marketers and distributors of branded and private label rice products in the United States. Its principal brands include Mahatma, Carolina, Success, Minute and Gourmet House.

Riviana Foods is a wholly-owned subsidiary of Ebro Puleva, S.A., the leading Spanish food group, with interests in dairy, sugar, rice and pasta products. It is the world leader in the rice sector and is the world's number two pasta manufacturer. Ebro Puleva's other subsidiary in the United States, New World Pasta Company, has such well-known brands as Healthy Harvest, Ronzoni, San Giorgio, Creamette, American Beauty, Skinner, Prince, Catelli and Lancia.