SunOpta enters j.v. for vegetable oil refining
March 11, 2008
by FoodBusinessNews.net Staff
TORONTO — SunOpta Inc. has agreed to establish a joint venture with Colorado Mills L.L.C. to build and operate an organic and natural vegetable oil refining facility.
"The benefit of consuming healthy natural and organic oils and avoiding oils containing trans fats has generated tremendous demand for our vertically integrated oil products," said Allan Routh, president of the SunOpta Grains and Foods Group. "Joining forces with Colorado Mills to operate this joint venture will position SunOpta to continue to meet increased demand and cost-effectively grow our healthy oils business."
The new facility, which is expected to be operational late this year, will be operated as Colorado Sun Oil Processing L.L.C. and will be 50% owned by SunOpta and 50% owned by Colorado Mills. It will be in Lamar, Colo., next to Colorado Mills’ crude oil processing facility and will refine about 35 million lbs of natural and organic sunflower, soybean and canola oils annually.
SunOpta will market most of the refined oil from the venture and anticipates generating incremental revenues of about $10 million.