New Allens Inc. Owners Offer Big Plans with Siloam Springs

by Arkansas Business Staff  on Monday, Apr. 21, 2014 12:00 am  

Siloam Springs officials are trying to figure out how to help Allens Inc. efficiently dispose of wastewater generated by increased production at “Plant 1” outside the city limits.

City Administrator David Cameron said Siloam Springs is allowing Allens to truck wastewater from the plant to the city’s new wastewater facility.

Since Jan. 25, the city has handled 18 million gallons and charged the company 3 cents per gallon, resulting in revenue of $540,000.

Cameron is working with Allens executives and environmental regulators on a permanent solution. Building a pipeline approximately 4 miles from the plant to the wastewater facility is one possibility, Cameron said.

Disposing of the wastewater is critical because the new owners of Allens want to increase production at the canning plant. Sager Creek Acquisition Corp., a newly formed entity owned by investment funds managed or advised by Sankaty Advisors LLC and GB Credit Partners LLC, won the right to buy Allens at a bankruptcy auction and closed the deal at the end of February.

Allens is also in talks with Kansas City Southern to build a railroad spur from the main line to the company’s facility.

Cameron said it would require about 70 yards of construction but was unsure of the exact cost, which Allens would pay. There was a spur previously, but it was covered in concrete when the tracks fell out of use.

Cameron said KC Southern is interested in having a line installed with guarantees that there would be enough volume of shipment to justify the expansion.

 

 

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