UPDATE 1-Fire at Alliance Grain site damages stored crops

* Says no one hurt, no significant impact on earnings

* May fill shipments with products from other origins

* Shares slip 1 percent in Toronto
(Adds details from conference call, market activity)

WINNIPEG, Manitoba, Dec 29 (BestGrowthStock) – A fire at an
Alliance Grain Traders (AGT.TO: ) facility in Turkey has damaged
7,000 to 10,000 tonnes of pulse and grain crops, but will not
have a significant impact on earnings, the Canadian legume
processor said on Wednesday.

Shares of the Regina, Saskatchewan-based company slipped 1
percent in Toronto to C$27.77.

Alliance Chief Executive Murad Al-Katib said the company
has temporarily closed pulse and grain processing facilities at
its Arbel Group site in Mersin, Turkey, until Jan. 3 after the
fire on Monday extensively damaged two warehouses and a loading
and receiving area.

It expects to resume normal production by the third week of
January. Meantime, it will service its shipments with products
from other origins if needed.

“Warehouses and inventory are very easy to replace,”
Al-Katib said in a conference call with analysts. “This
(damage) is certainly not of the magnitude it could have
been.”

Production facilities were not damaged, but site cleanup
and rebuilding warehouses will cause delays, Al-Katib said.

The cost of replacing warehouses and inventory is about
C$10 million to C$12 million ($10 million to $12 million), with
insurance covering the losses, Al-Katib said. He said he
doesn’t expect the fire to have a material effect on
operational results.

Alliance, which began nearly 10 years ago in Canada as
Saskcan Pulse Trading, has moved aggressively to expand its
global reach, acquiring the Turkish facility last year and
buying London trading house A. Poortman Ltd and a south
Australian pulse processor this year.

The Arbel facility produces commercially packaged pulse,
rice and bean products for both the Turkish market and export.
It also produces pasta from durum wheat and exports it under
the Arbella Pasta brand.

The fire has not affected pasta production.

Based on initial reports, the fire started when a truck and
trailer carrying white beans and operated by a third party
caught fire, the company said.

The fire’s cause is under investigation, and Alliance said
it looks to be accidental. No one was hurt and there is no
material impact to the environment, Alliance said.

($1=$1.00 Canadian)
(Reporting by Rod Nickel; editing by Jeffrey Hodgson)

UPDATE 1-Fire at Alliance Grain site damages stored crops