NutraCea, a world leader in stabilized rice bran, has signed a definitive agreement with the Bright Food Investment Group, a subsidiary of Bright Food Group, to build the world’s largest rice bran oil refinery. The new refinery will process an estimated 500,000 metric tons of raw rice bran annually to produce rice bran oil, new patent-pending defatted rice bran, and stabilized rice bran, all of which will be used in a wide range of food applications.
The facility is estimated to be completed in 2010 and will be the world’s largest rice bran oil manufacturing plant, with the capacity to produce in excess of $200 million in annual gross revenues based on today’s market prices. Both companies are also anticipating future projects together, including constructing additional facilities of similar size.
According to the terms of the agreement, NutraCea will provide 80 percent of the capital and retain 72 percent of the ownership and profits of the venture. Bright Group and a strategic advisor to the venture will contribute 20 percent of the capital and receive 28 percent of the profits. The agreement between NutraCea and Bright requires normal and customary government approval by the People’s Republic of China, but is not anticipated to cause any delays.
Brad Edson, president and CEO of NutraCea, said, “We have forged a very important relationship with Bright, which further strengthens our company’s global prospects. The size and scale of this agreement presents a major opportunity for NutraCea to enter China’s vast market and introduce rice bran oil, our new patent pending defatted rice bran and stabilized rice bran to one of the world’s most vibrant economies”.
Bright’s president, Cao Shumin, commented, “We are pleased to announce the selection of NutraCea as a partner in this important business venture. We believe our mutual business goals are in complete alignment with Bright’s vision to provide healthier and higher quality food to the public. We look forward to implementing this and future projects with NutraCea”.
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