Shrimp plant brings jobs to Williamsburg

KINGSTREE — Greg Ensign, President & CEO of SC Shrimp Processing & Biotechnologies, Inc. (“SC Shrimp”) announced today that plans to construct a 60,000 square foot shrimp processing and biotechnology plant in Salters were back on track.

The plant, which will initially employ 153 people was to be built in 2007 and scheduled to begin operating this June to coincide with the opening of the 2008 shrimp season.

In a recent meeting with Stanley S. Pasley, Williamsburg County Supervisor, Stan A. Williamson, chairman of the Williamsburg County Development Corporation and F. Hilton McGill, Jr., the executive director of the Williamsburg County Development Board, Ensign discussed SC Shrimp’s funding and building schedule.

Eventually, SC Shrimp will employ in excess of 350 people.

Also attending the status conference was Joseph F. Bristow, PhD, SC Shrimp’s lead scientist and Richard M. DeMarco, President & CEO of SC Shrimp’s parent company, AgraTech International, Inc.

Pasley reminded SC Shrimp’s executives that Williamsburg County and its governing body had approved an economic incentives package early last year and had expected the plant to be operational by this time.

Ensign explained that while SC Shrimp had been approved for a United States Department of Agriculture guaranteed loan, the banks would not accept or close on the loan.

This decision was made even though the banks would have had minimal exposure if the project were not successful. The banks were looking for additional credit enhancement and further explained that their decision had nothing to do with the merits of the project.

When pressed, the bankers explained that the U.S. Department of Agriculture loan guarantee program could take up to two to three years to compensate them for a loss if the project did not come to fruition. Without the additional credit enhancement at the time, the construction loan could not be made.

Undaunted and armed with an exceptional economic incentives package from Williamsburg County, SC Shrimp approached the SC Jobs-Economic Development Authority (“JEDA”) in Columbia.

On April 11, 2007, SC Shrimp received from JEDA an Inducement Resolution for a $10,000,000 Industrial Revenue Bond.

After many months of due diligence, SC Shrimp’s Bond application was placed on the State Budget & Control Board’s agenda. On March 18, 2008, the Budget & Control Board, chaired by Governor Mark Sanford, unanimously approved a $10,000,000 volume cap allocation for issuance of the bonds. Following the vote, State Senator J. Yancey McGill introduced SC Shrimp’s President Greg Ensign, Roy Noble, one of SC Shrimp’s founders, and F. Hilton McGill, Jr. from the floor of the State Senate to resounding applause.

SC Shrimp was lauded for its efforts to bring a new biotech industry to South Carolina. At the same time, SC Shrimp hopes to be instrumental in revitalizing the storied shrimping industry by bringing a value-added processing plant to the state.

While there have been other processing plants in the State, there has never been a complete value-added plant wherein the shrimp shell waste will be utilized as an additional product line, namely, the production of chitosan.

This commodity goes into numerous products in the medical, pharmaceutical, cosmetic and other industries. Initially, SC Shrimp will produce industrial grade chitosan.
Concurrently, research and development on crop enhancement and other chitosan applications is ongoing. It is expected that Dr. Bristow will be designated a Visiting Scientist at Coastal Carolina University in Conway, SC, where some of SC Shrimp’s research and development will be conducted.

On March 19, 2008, SC Shrimp’s parent company, AgraTech, filed and received two provisional patents from the U.S. Patent and Trademark Office. The potential revenue that may be generated from one or both of these patents are not yet included in SC Shrimp’s five year financial projections. Also, SC Shrimp was pleased to note that Williamsburg County is the recipient of a Commodities Development Initiative, through Congressman James Clyburn’s office, in the amount of $284,000, which can be used to further develop new applications for chitosan.

Ensign thanked Pasley and the Williamsburg County Council for their foresight and vision in providing the incentives package that will enable SC Shrimp to bring a maximum number of new jobs to Williamsburg County.

Senator McGill and the Williamsburg County Delegation have played, and continue to play, a major role in bringing the project to fruition. It was also acknowledged that the South Carolina Department of Commerce and the Santee Electric Cooperative were also providing support to assist in the development of the project.

SC Shrimp plans to close on the Industrial Revenue Bond within the next 60 to 90 days. At the same time, J.P. Turner & Company, L.L.C., Investment Bankers, along with at least one other brokerage house are negotiating to take SC Shrimp’s Private Placement Offering to market.

“The next twelve months promise to be both productive and exciting as we establish ourselves in Williamsburg County” stated Richard DeMarco.