Canadian natural and organic food group SunOpta is to set up a joint venture with Colorado Mills to run a vegetable oil refining facility in Colorado.
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The venture, to be operated as Colorado Sun Oil Processing, will be located in Lamar, Colorado, adjacent to Colorado Mills’ existing crude oil processing facility.
The site will be capable of refining 35m lbs of natural and organic sunflower, soybean and canola oils a year. It is expected to be operational in late 2008.
SunOpta said the facillity would enable it to expand into the healthy organic and natural vegetable oils business. As part of the agreement, SunOpta will market the majority of the refined oil from the venture and expects the venture to generate incremental revenues of US$10m.
Allan Routh, president of the SunOpta grains and foods group, said: “The benefit of consuming healthy natural and organic oils and avoiding oils containing transfats has generated tremendous demand for our vertically integrated oil products.”
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By GlobalDataSunOpta has had a business relationship with Colorado Mills for a number of years, and in 2006 financed an expansion of existing facilities to increase organic oil seed crushing capacity to meet SunOpta’s growing organic oil requirements.
Once in production, the joint venture will also refine existing crude oil for both Colorado Mills and SunOpta.
