FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
Date of Report (Date of earliest event reported) June 5, 1998.
HIGH PLAINS CORPORATION
(Exact name of registrant as specified in its charter)
Kansas #1-8680
(State or other jurisdiction of (Commission File
incorporation) Number)
200 W. Douglas #48-0901658
Suite #820 (IRS Employer
Wichita, Kansas 67202 Identification No.)
(Address of principal
executive offices)
(316) 269-4310
(Registrant's telephone number)
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Item 5 Other Information
Wichita, KS, May 28, 1998 -- High Plains Corporation (NASDAQ/NM:HIPC) CEO Gary
Smith applauds last week's Congressional vote to extend the ethanol tax
incentive through the year 2007. The May 22, 1998 vote was included as part of
the six-year federal highway reauthorization bill. President Clinton is
expected to sign the legislation.
The congressional vote is welcome news because it provides High Plains with the
time necessary to implement technological and cost-cutting strategies that will
establish it as a low-cost producer in the ethanol industry. "This action by
Congress is indicative of the positive impact of ethanol on both air pollution
mitigation and on the farm economy," said Smith. "But High Plains Corporation
can not base its strategic planning on the premise that the ethanol tax
incentive will be perpetually extended," he continued. "We must assume that
the tax incentive program will expire, and plan for High Plains to be well
positioned to compete profitably against all producers of alternative fuels in
the event of this occurrence."
"The key to the future financial success of both High Plains Corporation and
the domestic ethanol industry is improved plant efficiency, and technological
advances," explained Smith. Toward the goal of becoming a low-cost producer,
and as an early indication of the aggressive manner in which High Plains plans
to address this challenge, Smith cited examples of measures that are currently
planned for near-term implementation by the Corporation:
* The utilization of inexpensive landfill gas for process use at its Colwich
plant that will significantly cut production costs;
* The capture and marketing of carbon dioxide, a natural by-product of ethanol
production, as a profitable additional product; and
* ISO 9002 registration that will allow penetration into new market segments
and guarantee a higher attention to operational and quality standards.
In response to this extension and to recent improvement in product sales, High
Plains plans to increase its production from the current 80% average to full
capacity.
Based in Wichita, Kansas, High Plains Corporation is among the Nation's largest
producers of ethanol. The Company operates production facilities in Colwich,
Kansas; York, Nebraska; and Portales, New Mexico.
This press release contains forward-looking statements that are made pursuant
to the safe harbor provisions of the Private Securities Litigation Reform Act
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of 1995. Investors are cautioned that all forward-looking statements involve
risks and uncertainties, including without limitation risks of fluctuations in
feedstock commodity prices, changes in the market prices or demand for motor
fuels and Ethanol, legislative changes regarding air quality, fuel
specifications or incentive programs, as well as general market conditions,
competition and pricing. The Company believes that forward-looking statements
made by it are based upon reasonable expectations. However, no assurances can
be given that actual results will not differ materially from those contained in
such forward-looking statements. Additional information concerning these and
other factors is contained in the Company's Securities and Exchange Commission
filings, including its annual 10K, Proxy Statement, and quarterly 10Q filings,
copies of which are available from the Company without charge.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant had duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date June 5, 1998 HIGH PLAINS CORPORATION
/s/Gary R. Smith
Chief Executive Officer
