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JULY 2006

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ARKANSAS SPOTLIGHT


Goal: 'Zero Transportation Costs'

   In an interview with Site Selection, Foltz says that after the expansion of the Stuttgart plant, Patriot will be able to produce 25 million gallons of biodiesel product per year. The plant, which formerly served as a rice warehouse, will support eight high- wage engineering and technical jobs.
   Foltz says the Stuttgart location
was picked for its access to rail, Interstate highways and feedstock.
   "Stuttgart is located in the agricultural center of Arkansas," says Foltz. "And biodiesel is made primarily from agricultural products. We buy most of our feedstock from Riceland Foods. We use a lot of soybean oil."
   The close proximity to key suppliers means that Patriot "has zero transportation costs for importing our raw materials," Foltz says. "The plant is located only 55 miles southeast of Little Rock and just 110 miles [178 km.] southwest of Memphis. There are very good roads to the site, which is only 25 miles [40 km.] from Interstate 40. From a logistics standpoint, we are in a good spot."
   Foltz also notes that "Stuttgart has a better labor force than any other area in Southeast Arkansas. The Arkansas- Mississippi Delta area is notoriously impoverished, but Stuttgart is not in that mold. It has many established companies. In fact, it is the only town in the Delta that is actually growing. We looked at another town for this project, but there is more wealth here than in other Delta towns."
   Foltz adds that the Stuttgart Chamber of Commerce "was very helpful" in securing the deal, which included a sales tax incentive from Arkansas County.
   Coincidentally, Patriot opened its new plant the same week that oil prices reached US$72 a barrel in April.
   "Since announcing the company's formation near the end of last year, we have had nothing but positive feedback," comments Foltz. "It is obvious that biofuels are on the minds of legislators, business owners, farmers, truckers and consumers."
   And governors. Arkansas Gov. Mike Huckabee, known nationally for his weight loss and the book he wrote about it, supports alternative fuel for vehicles as avidly as he does healthy fuel for the human body.
   In an interview with Site Selection (see sidebar), the Republican Huckabee calls the establishment of two biofuels plants in Arkansas (one each in Stuttgart and Batesville) one of the most important accomplishments of the year for his state.
   "That is a tremendous prospect for us," says Huckabee. "Being able to turn farm crops into fuels is a major step forward for Arkansas and for our national economy."
   Huckabee and other Arkansas officials want to do more than provide the energy source that powers the vehicles of tomorrow; they want to help build them.
   That is why they are putting on a full- court press to win the new Toyota assembly plant that is being shopped around the South. Arkansas finished second to Texas in the running for the Toyota truck plant two years ago. This time, says Huckabee, the Razorback State plans to win.

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