Business
AGI Provides Update on Grain Bin Incident and Confirms Financial Guidance
AGI Provides Update on Grain Bin Incident and Confirms Financial Guidance Canad...
About this update from Ag Growth International Inc.
[{"type":"text","content":"\n \n \n \n AGI Provides Update on Grain Bin Incident and Confirms Financial Guidance\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n WINNIPEG, MB\n \n ,\n \n Jan. 20, 2021\n \n /CNW/ - Ag Growth International Inc. (TSX: AFN) (\"AGI\", \"we\" or the \"Company\") provided the following updates on the commercial grain storage bin failure (the \"Incident\") and on its expected fourth quarter financial performance.\n \n \n \n Update on the Incident\n \n \n \n The Company has made substantial progress in determining its approach to the potential remediation of the commercial grain storage bins as previously disclosed. In the context of delivering the best possible solution for the affected customers, while also considering time to remediation, the Company has determined to proceed with replacing the entire hopper base of the grain bins as opposed to replacing components of the existing structure. The grain bins involved are comprised of a cylinder top and a hopper base. While the cause of, and the responsibility for, the Incident has not been determined, the Company continues to proceed on the basis of providing full remediation to the two affected customer sites.\n \n \n The replacement of the hoppers results in a significantly expanded scope. The remediation is now comprised of an increased amount of steel and a more extensive level of decommissioning and construction. The recent increase in the price of steel also drives higher costs for the project. Taken together these factors will result in a\n \n $30 million\n \n total increase in the expected cost of the remediation for the two customer sites combined. The Company continues to believe that this amount will be partially offset by insurance coverage and result in a lower net impact. AGI is working with insurance providers and external advisors to determine the extent of this cost offset.\n \n \n \"\n \n 100% of our focus is on our customers as we deal with these product issues at the two industrial sites,\n \n \" said\n \n Tim Close\n \n , President and CE...