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MGP Closing Protein, Starch Plant To Consolidate

Ingredients company is shutting down its starch and protein manufacturing operations at its Pekin, Ill., plant and consolidating them at its facility in Atchison, Kan.

ATCHISON, Kan. (AP) -- MGP Ingredients is shutting down its starch and protein manufacturing operations at its Pekin, Ill., plant and consolidating them at its facility in Atchison.

The company says it is cutting from 70 to 80 jobs companywide, including 40 at the Pekin plant. Last month MGP Ingredients announced it was closing its flour mill in Atchison, forcing the layoff or early retirement of 44 people.

Company spokesman Steve Pickman says the distillery at the Pekin plant will continue operating.

MGP expects to take a $6.9 million noncash charge for the moves, plus a $3 million loss from sales of wheat no longer needed for milling. It expects to make up $1.2 million of that in deferred gains, but will incur about $2.5 million in severance-related charges.

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