Kior Inc. (KIOR), the Texas producer of gasoline and diesel from wood, reached a six-week high after saying construction on its first commercial plant is on schedule and announcing that it’s changing the location for its second facility.
Kior rose 7.4 percent to $12.46 at the close in New York, the highest since Feb. 9.
Kior’s first plant, in Columbus, Mississippi, is 75 percent complete and on track to begin production in the second half of this year, Chief Executive Officer Fred Cannon said yesterday in a conference call. The $222 million facility is on budget.
The company will build its second Mississippi plant in Natchez instead of Newton, Cannon said. Kior switched locations because of the new site’s proximity to railways and barges on the Mississippi River.
The production facility will be able to make as much as 120,000 gallons (455,000 liters) of fuel a day and is expected to begin production in mid-2014, he said.
After the first plant is complete, Kior plans to raise more capital, said Erica Mannion, a spokeswoman for the Pasadena, Texas-based company. She didn’t say how much.
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