NutraCea signs agreement with Bright Food Investment to build world''s largest rice bran oil refinery
PRNewswire reports that NutraCea has signed a definitive agreement with the Bright Food Investment Group, China''s largest food conglomerate, to build the world''s largest rice bran oil refinery. The new rice bran oil 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. 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 facility, upon completion in 2010, will be the world''s largest rice bran oil and rice bran derivative manufacturing plant with capacity to produce in excess of $200 million in annual gross revenues based on today''s market prices. The basis for this venture is the implementation of NutraCea''s proprietary stabilization technology, which will reduce production costs of the rice bran oil while increasing the yield and enhancing the nutritional profile of the end products. In addition, NutraCea and Bright Food Group anticipate the future construction of additional facilities of similar size. The agreement between NutraCea and Bright requires normal and customary government approval by the People''s Republic of China.