LOS ANGELES & CLOVERDALE, Ind. -- Altra Indiana LLC, a wholly owned subsidiary of California-based Altra Inc., has begun to develop what is expected to be one of Indiana's largest ethanol production facilities.

Starting construction on the 147-acre Cloverdale facility, a $170 million project, continues Altra's current phase of its strategic plan to build 500 million gallons per year (MMGY) of biofuel production capacity across the nation through the acquisition and enhancement of existing operating assets as well as the development of strategically located and permitted sites with state-of-the-art biofuel refining technology.

Located in the heart of the Midwestern corn belt, the Cloverdale facility is expected to benefit from the region's extensive dairy cow population and the area's competitive transportation advantage with excellent rail and truck access to both Midwestern and southern fuel distribution centers.

Upon completion, the Cloverdale plant capacity is expected to reach 88 MMGY of initial ethanol nameplate capacity, with production scheduled to commence in the fourth quarter of 2007. The Cloverdale facility is anticipated to create 45 new full time jobs in the region and generate millions of dollars of economic activity in the local and surrounding communities.

"Commencing construction on the Cloverdale facility is an important achievement for Altra, as we continue to create a nationwide ethanol production and distribution footprint by acquiring and 'speeding up' existing, traditional corn-to-ethanol plants and 'starting up' new ones," said Larry Gross, CEO of Altra Inc.

Altra Inc. is acquiring and developing a portfolio of renewable energy projects. The company is focused on the production and sale of ethanol and biodiesel. Altra intends to become the leading integrated biofuels company with a national footprint, employing state-of-the-art manufacturing, processing technologies, and customer service disciplines.

The company owns and operates California's only large scale operating ethanol plant, located in Goshen, Calif. Altra is also currently constructing a 60 MMGY ethanol facility located in Coshocton, Ohio, which is expected to be completed in the third quarter of 2007, and has begun construction of a 70 MMGY ethanol facility located in Carleton, Neb., which is expected to be completed in the fourth quarter of 2007.