Caledonia-based
CSL USA Inc. is suing a New York manufacturer after the company failed to provide several freeze dryers which were needed to get CSL’s newest facility up and running.
CSL USA Inc. (Cultures Supporting Life USA Inc.), a manufacturer of ingredients used in the dietary supplement and food industries, opened an 80,000-square-foot fermentation facility in Caledonia in
the summer of 2022.
CSL is suing Kinderhook, New York-based
Hudson Valley Lyo Mac. The company, owned by
Tom Finck, makes freeze dryers for commercial use.
CSL is an American subsidiary of Italian probiotic manufacturer ProBioFuture. CSL and ProBio invested more than $50 million to acquire the land for its Caledonia facility in 2019 and construct a plant.
A key component of that investment was a series of freeze dryer machines, which are used to remove water from probiotic bacterial cells to make sure the cells can be stored securely.
In 2019, CSL and Hudson Valley began negotiating the purchase and delivery of eight freeze dryers, according to the complaint. CSL spent $2.21 million on the eight machines. However, the company alleges only one freeze dryer was ever shipped to the Caledonia facility.
That single machine, which arrived in 2022, had “several defects,” including unreliable remote access and an inability to maintain temperature, according to the complaint. To date, the machine has still not been replaced.
"Fully aware that CSL had invested substantial resources in its Wisconsin production facility and required the freeze dryers for primary probiotic production, Finck repeatedly provided false assurances of delivery dates for the purpose of obtaining additional," according to the complaint.
CSL found freeze dryers from a third party after Hudson Valley allegedly failed to provide the eight freeze dryers promised. CSL claims it has suffered at least $6.5 million in damages due to Finck’s “misconduct.” CSL seeks to recover the $6.5 million in damages along with $4 million in lost profits and special damages.
Neither CSL USA nor Hudson Valley responded to requests for comment left Monday evening.
