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News Release

Date: For Immediate Release
Contact: Gabriela Gacka
SCD Probiotics
cell: +1 816.237.9731

SCD Invests $1.4 million in Downtown Manufacturing Facility

Future Growth Propelled By Opportunity in Tannery Industry

(Kansas City, Missouri) December 3, 2012 - SCD Probiotics, a Kansas City-based manufacturer of probiotic products and technology, will host a ribbon cutting ceremony December 14, 2012 at 2:00 P.M. at the newly expanded and renovated manufacturing facility at 1327 E. 9th Street, Kansas City, Missouri. Governor Jay Nixon and Kansas City Mayor Sly James have been invited to attend, as well as SCD Probiotics clients from around the world.

Expansion of the manufacturing facility will accommodate five times the current production capabilities, and laboratory operations will double. Five years of consistent sales increases, in addition to projected growth in the tannery industry, were the catalyst for the capital investment.

New equipment, including fermentation tanks with 76,000 liters of additional capacity and a state-of-the art bottling line purchased earlier this year, will be instrumental in improving operational efficiencies. The building renovation, production equipment and lab expansion were financed with help from the Missouri Technology Corporation, Missouri Development Tax Credits, private investors and UMB Bank. “As an entrepreneur and business leader, I am grateful for the support of our investors, UMB, Governor Jay Nixon and the state of Missouri,” says Matt Wood, CEO of SCD Probiotics. “The financial assistance provided to us over the past several years has helped SCD increase production capacity, hire and train new people, and invest in our community.”

A new lease for additional warehouse space was also finalized in August of this year, bringing storage and fulfillment functions to the downtown Kansas City area. 12,000 square feet of space (1951 E. 18th Street) conveniently located near the manufacturing facility further improves operational efficiencies and increases SCD’s commitment to downtown Kansas City. SCD Probiotics currently employs 30 people, with employment expected to grow by about 20% as operations ramp up in the coming months.

Success in the worldwide leather tanning industry account for some of the sales growth experienced by SCD this past year. The global leather tanning chemical market was $4 billion in 2011 and the industry is one of the world’s worst polluter of toxic waste. Five new environmentally friendly SCD Probiotic products launched this past year replace the chemicals normally used and provide a “green solution” for removing grease and fat from the hides. Benefits include better quality hides, water reduction and cost savings, and less toxic effluent (water runoff). Working with US Commercial Services in Kansas City and the Missouri Department of Economic Development, SCD Probiotics is identifying prospects around the world. On a Missouri sponsored trade mission with Governor Jay Nixon, Wood identified new prospects in Brazil and Argentina. Additionally, in 2012, SCD shipped products to tanneries in China, a country that represents 25% of the global tannery market, as well as Colombia, India, Mexico, Czech Republic, Myanmar, Poland, Thailand, Turkey, Spain and the USA.

International agreements, including new licensees and / or distributors around the world, allow for the production, manufacturing and selling of SCD products in 28 countries. Exports represent 88% of 2012 sales.

Sales have grown steadily over the last five years. In addition to the tannery industry, SCD Probiotics has been successful in the agricultural, animal health (i.e. pet food supplements), composting and water treatment industries.

Based in Kansas City, Missouri, USA, SCD Probiotics harnesses nature’s ability to restore personal health and the environment through the development of exclusive probiotic technology. SCD Probiotics Technology uses beneficial microorganisms (good bacteria) to repopulate toxic environments with healthy microbes in a variety of industries, including agriculture, animal health, aquaculture, home and garden, human health and environmental applications.

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