SILVER SPRINGS, Nev. — Silver Springs’ location at the junction of Highway 50 and Highway 95-A couldn’t be better for a new factory that’s opening in a long-vacant industrial building.
Cleaned Dried Processing Inc. dries tomato seeds and skins that arrive from the Highway 50 corridor in California as well as potatoes from growers in Winnemucca and sugar beets and potatoes from Idaho, north on Highway 95.
The dehydrated foodstuffs are sold to makers of pet foods an animal feeds.
Clean Dried Processing hosted an open house for Silver Springs residents Wednesday night, giving them a chance to see an operation that will be later closed to public viewing because of U.S. Food and Drug Administration food-safety regulations.
The company’s facility is at 600 Lake St., on the east side of the Silver Springs Airport in a 143,000-square-foot building that housed a truss-manufacturing plant before the recession.
Ten people were hired to bring the plant into operation, but it’s adding a second shift that will bring 10 more jobs to the region, said Richard Erickson, the chief executive officer of the LaBudde Group, which owns Clean Dried Processing.
LaBudde Group, which is headquartered at Grafton, Wis., has a 107-year history of finding markets for agricultural byproducts. It got its start, Erickson said, converting waste grain at Milwaukee’s breweries into animal feed. It currently operates facilities in Wisconsin, Michigan, Minnesota and Iowa.
Those facilities, Erickson said, are running near full capacity, and LaBudde began scouting for West Coast locations for expansion.
Turned off by California’s regulatory environment, the management team led by Erickson began scouting locations in northern Nevada.
“The folks in Lyon County have been very helpful,” Erickson said.
Northern Nevada Development Authority, meanwhile, assisted the company as it won state incentives for economic development.
“This will be a big boost to the Silver Springs area,” said Rob Hooper, executive director of NNDA. “Not only will Clean Dried Processing be creating jobs, they will act as a catalyst for other companies to make the decision to move or expand to the area.”
The financing of the new plant includes a $1.6 million investment by Clean Dried Processing to purchase the building and equipment.
Meadows Bank, meanwhile, provided a $4.9 million loan guaranteed by USDA Rural Development. Meadows Bank also provided a $1.2 million loan guaranteed by the U.S. Small Business Administration for working capital.
Dried tomato pomace is produced at the new plant from the mixture of skins, pulps and seeds left over after tomatoes are processed into juice, ketchup or soup. It’s used by pet-food makers to add nutrition as well as a flavor that cats like.
Dried potatoes, meanwhile, provide vitamins and are particularly in demand for pet-food products for overweight pets.
Ten loads of potato products will arrive at the processing plant daily.
Brad Lancaster, a vice president of Miller Industrial Properties, represented the property owner along with Andi Wilson and Brad Bonkowski of NAI Alliance Carson City. Mike Hoeck of NAI Alliance in Reno represented LaBudde.