Posted on May, 15, 2024 at 10:14 am
BROWNSVILLE, TEXAS, US — Making its first venture into flour milling in the United States, Westa, Inc. has begun construction of a $70 million flour mill at the Port of Brownsville, with plans to mill US wheat and export some of the flour to international destinations.
In an exclusive interview with World Grain, Zaur Kafkas, chief executive officer of Westa, said the mill’s construction, which began with a groundbreaking ceremony on April 18, will be completed in several stages.
“The first stage, with an investment of approximately $20 million, will consist of one milling line with (flour production) capacity of 250 tonnes (5,000 cwts) per day,” Kafkas said. “Subsequent stages will add another 250-tonne milling line and storage silos with a capacity of 20,000 tonnes (735,000 bushels) of grain, along with a warehouse.”
The first phase is expected to be completed by May or June 2025, Kafkas said.
Westa Inc. was recently formed by Kafkas and his two business partners, Cemal Gezersoy and Fevzi Gezersoy. The partnership’s global headquarters is in Istanbul, Turkey.
“Westa Inc. is solely focused on building our US flour milling network, starting with the facility in Brownsville,” Kafkas said. “The three of us have been business partners for over 15 years, originally based in Turkey and Ukraine, with multiple successful businesses under our belts.”
Although new to the US flour milling sector, Kafkas emphasized “we have prior experience and investments in the flour business outside the country. We recognized the opportunities in this sector, not only for the local market but also for exporting value-added products, given the vast wheat grain exports from the United States.”
Kafkas said Westa, which has its North American headquarters located in Miami, Florida, US, and Toronto, Canada, is a privately held firm that is structured as a C-Corporation, a legal structure in which the owners, or shareholders, are taxed separately from the entity. The companies that Kafkas and his partners have invested in are mainly leading wholesalers in the food industry, specializing in delivering food products such as edible oils, wheat, corn and flour-based consumer packaged goods in Europe, Africa and South America.
The decision to locate Westa’s first mill at the Port of Brownsville was made after carefully evaluating multiple locations, Kafkas said. It will be the first tenant in the port’s new 118-acre industrial park. The port noted that the Council for South Texas Economic Progress (COSTEP), a nongovernmental, regional economic development organization serving seven counties in South Texas, played a major role in luring the company to southern Texas.
“Texas’ overall investment environment, coupled with the government’s support, made it an attractive choice,” Kafkas said. “However, given our potential export plans, the port’s strategic location and extensive modern infrastructure were the deciding factors.”
Kafkas said the Port of Brownsville mill primarily will process hard red winter wheat sourced from the northern part of Texas.
“The wheat will be transported via rail and barges, taking advantage of the port’s excellent logistics capabilities,” he said. “In addition to producing high-quality flour, we will generate millfeed pellets as a byproduct.”
He noted that about 5% to 10% of the flour produced at the mill will be whole wheat flour. About 70% of the flour will be shipped in bulk, with 30% bagged, he said.
Although positioned near Mexico, Kafkas said Westa’s primary export market, at least initially, will be farther south.
“While we are still evaluating the possibility of exporting to Mexico, our focus will be on leveraging our established connections in various South American countries where we see promising opportunities,” Kafkas said.
Kafkas said Westa has narrowed its list of potential milling equipment suppliers down to five, and its board of directors will select its supplier later this month.
“We can guarantee the highest quality by leveraging recent technological advancements in flour milling,” he said. “Our commitment to producing the best quality flour will set us apart from competitors.”
The company will build its milling complex on more than 10 acres, located at the turning basin of the Brownsville Ship Channel.
Kafkas said the Port of Brownsville facility likely won’t be the only flour mill Westa builds in the United States.
“Given the positive outlook for the flour milling industry, we have plans to expand our operations in the US, focusing on exporting flour and flour-based products to international markets where we see growing demand,” Kafkas said.
Once the first phase of Westa’s mill is operational, Texas will have nine flour mills with a combined daily milling capacity of 101,260 cwts, which would rank third behind California and Kansas, according to the Sosland Publishing Co.’s2024 Grain & Milling Annual. Miller Milling also is expecting to complete an expansion project in early 2025 at its mill in Saginaw, Texas, which will increase that plant’s daily milling capacity by 10,000 cwts.
Source: World Grain