Equipment provider Ag Growth International Inc. (AGI), Winnipeg, said on Jan. 20 that full remediation costs to repair commercial grain storage bins for two customers is expected to cost C$30 million more than expected. In addition to higher steel costs, AGI said it will proceed with replacing the entire hopper base of the grain bins as opposed to replacing components of the existing structure.
As a result, the replacement of the hoppers results in a significantly expanded scope. The company said it continues to believe that this amount will be partially offset by insurance coverage and result in a lower net impact.
A twelve-story grain storage bin manufactured by AGI and located at customer Fibreco’s export terminal in North Vancouver, B.C., collapsed last fall (GM Sept. 18, 2020). The incident did not result in any injuries. AGI said in May 2019 a similar product in a substantially different application and installed at a different site for a different customer suffered a failure.
AGI said the bin that collapsed is part of a new line that was developed and manufactured by the company over the past two years in response to market demand. It is a larger version of AGI’s standard hopper line. The company said the line is unique and distinct from the rest of AGI’s product lines, including its other grain storage bin products, and is not in place or being sold to any other customers.