Astec Industries, Inc. announced today it has sold its first wood pellet production facility for $30 million. Highland Pellets LLC has agreed to pay Astec to build, deliver and install the first production line of a new turnkey wood pellet production facility made by Astec. The contract includes the option to add additional production lines, related equipment and installation services which could bring the total order amount to $143 million. Astec expects to deliver the first production line and related equipment no later than early 2016.
"Highland Pellets has been great to work with on this agreement and we look forward to a long-term relationship with them," Astec CEO Ben Brock said.
Although Astec has received an order and a down payment on the first $30 million portion of the facility, the remaining $113 million worth of goods and services is optional. Brock said he believes Highland Pellets will place the additional orders. Astec is not financing this order and will generally recognize revenue on the first production line and any subsequent production lines when they are delivered to Highland Pellets.
Astec Industries, Inc. is a manufacturer of specialized equipment for asphalt road building; aggregate processing; oil, gas and water well drilling; and wood processing.