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SureBeam to supply irradiation equipment

06-Nov-2002

Related topics: Supply Chain

In the US, SureBeam, the food irradiation provider, is to supply Salubris Limited Partnership with irradiation systems valued at $8.9 million (€8.93m).

The purchase of this system will allow Salubris to build and operate a new service centre in the Fort Worth, Texas area. While SureBeam will have no ownership interest in the centre, it will receive processing royalties.

In anticipation of the increasing demand for irradiated products from the growing list of grocery and foodservice retailers, this centre will provide capacity as it is needed for the surrounding five-state area. This new facility, although not owned by SureBeam, will also assist in servicing SureBeam's national and regional processor customers located in these states.

The agreement means that Fort Worth-San Diego Investments, the general partner in Salubris, has a right to negotiations on certain future opportunities in the five-state area of Texas, New Mexico, Oklahoma, Arkansas and Louisiana to purchase SureBeam systems and to provide SureBeam processing.

"This is a fantastic opportunity to participate on the ground floor of a rapidly growing industry that improves the quality of life and food safety for the American consumer," said David A. Corbin, president of Fort Worth-San Diego Investments, general partner in Salubris. "Food irradiation is rapidly becoming a standard feature of American public health and we are excited to bring this technology to producers and processors in the Southwest, in general, and the Fort Worth area, in particular."

"This is a very exciting opportunity for us," said Larry Oberkfell, SureBeam CEO. "It allows us to add valuable capacity in a financially prudent and strategic manner. By working closely with Salubris, our national and regional processor partners will receive the same SureBeam service and, most important, be able to effectively service their customers that span the US."

Similar to a microwave oven, SureBeam technology uses electricity as an energy source to irradiate and to help eliminate harmful bacteria such as E. coli, Listeria, and Salmonella. Together with its partners, SureBeam processed fresh ground beef is sold in over 850 stores in the Mid-West, Northeast and Mid-Atlantic States. Headquartered in San Diego, California, SureBeam is a leading provider of electron beam food safety systems and services for the food industry.