World Grain - February 2008 - 12

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NutraCea in joint venture to build flour mill in Indonesia
PHOENIX, ARIZONA, U.S. - One day after filing for provisional patent protection with the U.S. Patent and Trade Mark Office on its technology to stabilize wheat bran, Phoenix, Arizona,
U.S.-based NutraCea on Jan. 25 said it reached agreement with
Fortune Financing Overseas Ltd. to build a new flour mill in Indonesia that will incorporate the new technology.
Fortune Financing is an affiliate of Pacific Advisors
Holding Co., which is one of the largest flour millers
in Southeast Asia.
As part of the joint venture, NutraCea will build a
full-scale, proof-of-concept wheat bran stabilization
facility to validate the technology and promote its
widespread use to convert wheat bran into a food
ingredient.
NutraCea said construction on the new mill is expected to begin in mid-2008, with operations set to start in early
2010. The estimated construction cost for the project is in the
range of $35 million, depending upon variability in the size and
actual equipment costs of the plant.
Construction costs, revenues and profits will be shared 51% by

NutraCea and 49% by Fortune Finance. NutraCea will lease its
proprietary stabilization equipment to the venture, while maintaining all of the intellectual property rights to the technology
and patents.
The facility is expected to produce 183,000 tonnes per year,
generating revenues of more than $100 million.
Margins also are expected to be significantly better
than those of traditional mills due to the inclusion
of NutraCea's cost-effective stabilized wheat bran
technology, the company said.
Lim Ai Ping, president of Fortune Finance, said
the joint venture will "take advantage of a new and
unique technology to improve the profitability of
our wheat milling operations."
"Indonesia imports over 4 million tonnes of
wheat flour annually, and the ability to produce more product locally offers tremendous cost savings associated with shipping, before we even take into account the increased yield that we anticipate achieving," Ai Ping said. "We look forward to expanding the
realm of possibilities that this proprietary technology offers."

Kaohsiung container port hits full capacity
KAOHSIUNG, CHINA - Kaohsiung announced in January that
it expects to lose its place as the world's sixth-largest container
port, after it hit full capacity, handling a record 10.2 million 20-foot
equivalent units (teu's) last year. A planned expansion is not due for
completion until 2013.
The southern Taiwanese port expects this will create logistical problems for export-reliant consumer electronics and steel companies.
The Kaohsiung Harbor Bureau attributed the growth last year to
two main factors, including the rising volume of grains and bulkier

commodities shipped in containers. At the same time, a number
of exported electronic goods were shipped by sea, replacing air
freight.
The Port of Kaohsiung has already begun the first phase of building its new International Container Terminal, which once completed will add an extra 2 million teu's of handling capacity.
However, the new wharves being constructed are not expected
to be completed until 2013. The port currently has five container
terminals with 23 berths. (See page 33 for related article)

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World Grain - February 2008

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