Flexible Solutions International Signs Food Grade Contract with Illinois Plant.

Flexible Solutions International (FSI) has signed a significant food-grade contract with an Illinois plant, with estimated annual revenue between $6.5 million and $13 million. The contract has a five-year term and includes an option for expansion to over $25 million.

Flexible Solutions International (FSI) has announced the signing of a significant food-grade contract with an Illinois plant, with estimated annual revenue between $6.5 million and $13 million. This contract, which has a five-year term, includes an option for expansion to over $25 million in annual revenue [1]. The agreement also features provisions for tariff and inflation protection.

FSI's CEO, Dan O'Brien, stated that this contract, combined with the one announced in January, could bring their new food-grade production to more than $50 million per year by 2027. He added that, with their legacy business moving to Panama and the ENP business in Illinois, the company aims to double its revenue within the next 18 months [1].

The specific products, customer, and volumes under this contract are not disclosed, but a redacted version of the contract will be filed with the SEC once both parties approve it. No additional equipment or capital improvements are needed to begin or scale up production to the revenue estimates.

Flexible Solutions International is an environmental technology company based in Taber, Alberta. Its subsidiary, NanoChem Solutions Inc., specializes in biodegradable, water-soluble products using thermal polyaspartate (TPA) biopolymers. These products have wide usage in scale inhibitors, detergent ingredients, water treatment, and crop enhancement [1].

This latest contract is part of FSI's strategic expansion into the food and nutrition markets, following their FDA food-grade approval for the Peru IL plant in 2022. The company is also manufacturing energy and water conservation products for various markets worldwide.

References:
[1] https://finance.yahoo.com/news/fsi-announces-second-significant-food-210000677.html
[2] https://seekingalpha.com/news/4483559-fsi-signs-food-grade-contract-with-illinois-plant