news: Monday, October 05 2009 9:23 AM, EST Carbonics Announces Culbertson Revival Business Wire "US Press Releases " Inventory Liquidation Complete
NEW YORK --(BUSINESS WIRE)-- Carbonics Capital Corporation (OTCBB: CICS) announced today that the liquidation of inventory at its Culbertson, Montana -based oilseed crush facility ("Culbertson") is complete.
Culbertson was previously unable to renew its working capital line of credit during the second half of 2008 and was therefore unable to complete its purchase of delivered oilseed inventory. Culbertson later cooperated with the Montana Department of Agriculture and the North Dakota Public Service Commission to liquidate and pay for the delivered crop. After several months of difficult work, and the tremendous efforts of Montana and North Dakota regulatory officials, Carbonics is pleased to report that the liquidation is complete.
With the liquidation complete, focus is now centered on reviving and revitalizing Culbertson's operations for the benefit of its creditors, stakeholders, the community and the region. Carbonics is focused on finding a strategic partner with the financial, operational and other resources needed to subsidize Culbertson's growth and development, with a focus on the expanded production of food grade vegetable oils and advanced biofuels.
Culbertson consists of oilseed handling, storage and processing infrastructure, including mechanical crush and vegetable oil refining equipment. It has over two million gallons of crude vegetable oil storage, over one million bushels of oilseed storage, and over four thousand tons of meal storage. Additional infrastructure includes a rail siding, truck and rail scales, and major U.S. highway frontage.
Dr. Paul Miller , Carbonics' president and CEO stated, "We are pleased that growers have been compensated successfully for oilseed crops delivered to Culbertson . Culbertson is very important to the community, the region and Montana and efforts are underway to revive the operations for processing of food grade oils and, with the right strategic partner, advanced biofuels."
Culbertson is located in North Eastern Montana in a productive agricultural region known as the MonDak. The region, which overlaps both Montana and North Dakota , is known for outstanding production of grains and oilseeds and Culbertson has been a fixture in the region since the mid-50's and, under various ownership, has undergone upgrades over the years.
Domestic vegetable oil consumption is at approximately 20 billion pounds per year and historical growth has been in excess of 2%. This existing market, combined with advanced biofuels initiatives, is increasing the need for additional oilseed production and processing. The MonDak region is well positioned and Culbertson is located strategically to meet these growing vegetable oil needs.
Moreover, an increasing awareness of the health dangers associated with trans-fat has increased the demand for naturally heat stable oils such as safflower and sunflower, which Culbertson is known for producing. Given the proximity to Canada and regional production, canola is also an option for processing as well as camelina, an emerging oilseed crop with significant potential as raw material for biojet fuel.
" Culbertson is uniquely sized to process a variety of high quality vegetable oils as well as support the emerging processing needs for vegetable oil as raw material for advanced biofuels. The productive region combined with the processing infrastructure result in a compelling opportunity for growth. We look forward to identifying and forging an alliance with a qualified strategic partner to bolster our efforts to exploit this exciting opportunity," stated Dr. Miller.
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