NEW SUGARBEET FACTORY TO BE CONSTRUCTED IN MOSES LAKE, WASHINGTON
Leon Baker, president of Columbia River, reported that the parties have formed Pacific Northwest Sugar Company, L.P., of which Columbia River will be the General Partner. Columbia River will produce and market sugarbeets to the new factory which will be designed, constructed and, later operated, by Holly Sugar for the partnership. Holly Sugar will also market all refined sugar produced at the facility. The factory's initial slicing capacity when it commences operations in 1998 will be 6,000 tons per day, and its design provides for incremental expansion should market conditions warrant.
Baker indicated that the Columbia River Basin is one of the most productive and low cost sugarbeet growing areas in the world. When the Utah and Idaho factory closed in 1978, it was the largest sugarbeet factory in the United States and over 50,000 acres of sugarbeets were grown in the area. Since that time, a persistent group of growers has continued to pursue the dream that sugarbeets would once again be raised in the Basin. With Holly Sugar that dream was realized in 1993 when beets began to be grown in the Basin for delivery to Holly's Tracy and Hamilton City, California factories.
The corporate/cooperative relationship between Imperial Holly and Columbia River Sugar Company is unique in the sugar industry, and combines the dedication, agricultural resources and production experience of a large, successful grower community with Imperial Holly's engineering, factory management and marketing skills. Imperial Holly, through its Holly Sugar subsidiary, will also be a minority investor in the Partnership. Instrumental to the project's formation has been the involvement of the St. Paul Bank for Cooperatives, which has agreed to provide required financing, including project development, construction, term and seasonal working capital needs.
/CONTACT: Leon Baker, president of Columbia River Sugar Company, 506-766-1933/
CO: Columbia River Sugar Company ST: Washington IN: FOD AGR SU:
DW -- NY047 -- 8644 11/03/95 13:00 EST