Engineering News

Converted Organics to Expand Manufacturing Capacity at Gonzales Plant
Wednesday June 4, 7:00 am ET

BOSTON--(BUSINESS WIRE)--Converted Organics Inc. announced today that it has begun implementing plans to expand capacity at the companys manufacturing facility in Gonzales, CA. The equipment required to commence receiving food waste was delivered to the plant earlier this week, and is expected to be installed and operational before the end of the week.

"The installation of this new, state-of-the-art equipment is an essential component to our plans to upgrade this facility and enable the company to receive waste and associated tip fees at this site, said Edward J. Gildea, President of Converted Organics. The new equipment will also enable Converted Organics to augment production capacity at the plant in line with our original plan to increase production by 100 percent."

Converted Organics acquired the Gonzales plant in January of this year, with the intention of upgrading the facility. The equipment currently being installed constitutes phase one of the upgrade. The second phase involves installing equipment that will enable the facility to produce solid fertilizer products in pellet formulation, in addition to the liquid fertilizer currently being produced. Phase two of the upgrade is expected to be completed by September 30, 2008.

About Converted Organics Inc.

Converted Organics, based in Boston, MA, is dedicated to producing valuable all-natural, organic soil amendment or fertilizer products through food waste recycling. The company uses proven, state-of-the-art technologies to create a product that helps grow healthier food and improve environmental quality. Converted Organics plans to sell and distribute its environmentally friendly fertilizer products in the retail, turf management, and agribusiness markets.

Converted Organics' fertilizer products will be produced in both a dry pellet and liquid concentrate. Converted Organics' products have been tested in numerous field trials for more than a dozen crops with the result that, on average, the net value of the farmer's crop increased 11-16%, depending on the particular crop and product application. This is due, in part, to the disease suppression characteristics of the product, which reduce or eliminate the need for other costly, often toxic, crop protection applications. Increased use of nitrogen in commercial agriculture and turf grass applications, such as golf courses, has reduced the soil's ability to absorb nitrogen and other nutrients. Using the products produced by Converted Organics helps restore the soil by replenishing these micronutrients. This reduces the amount of nitrogen required in a virtuous cycle that benefits from long-term use. As a result, use of the product will reduce chemical run-off to streams, ponds and rivers, an objective with significant long-term benefits to the environment.

The products have a long shelf life compared to many other organic fertilizers. In a number of lab and field trials, the liquid product has been shown to be effective in mitigating powdery mildew, a leaf fungus that effects most plants and grasses and restricts the flow of water and nutrients to the plant. The Company's fertilizer products can be used on a stand-alone basis or in combination with more traditional fertilizers and crop protection products. Converted Organics expects to benefit from increased regulatory focus on organic waste processing and on environmentally friendly growing practices.

Source: Converted Organics, Inc.

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