15th Oct 2009 10:00
PureCircle Limited ('PureCircle' or 'the Company')
PureCircle Announces Successful Completion of Next Stage of Global Expansion and DiversificationPureCircle (LSE: PURE), the world's leading producer of Natural High Intensity Sweeteners, including Reb A, is pleased to report that it has signed a co-operation and mutual investment agreement with the Government Agency of the United States for International Development (USAID) and the Government of Paraguay to promote the cultivation of the stevia leaf, from which Reb A is derived. PureCircle is the first company in the region to successfully complete the development agreements necessary to accelerate stevia development and markets to the next level. In response to accelerating demand from Western economies, an important part of PureCircle's strategy is to maintain a significant and diversified lead in the world's stevia supply chain of several years in production of stevia, not only in China but on other continents. Currently the Company sources the leaf mainly from China and for three years it has been expanding its reach within Paraguay, investing heavily in local infrastructure.
This has resulted in the agreement with USAID and the Paraguayan Government as part of the Paraguay Vende economic growth programme. PureCircle's stevia program is acknowledged by USAID and Paraguay's Government Agency as offering significant commercial and social development opportunities for regional development in Paraguay and South America. PureCircle is committed to investing in community projects in the areas in which it operates. Stevia is grown by small farmers and the support of the Company for this community has been partly responsible for the local economic well-being where the leaf is grown. Additionally, because it contains zero calories, the use of stevia in its various forms, including Reb A, is a vital factor in the worldwide battle to combat obesity and diabetes Dorn Wenninger, PureCircle's Corporate Vice President of Supply Chain, said: "The decision by USAID and the government of Paraguay to select and invest with PureCircle, illustrates the enormous commercial opportunities and socio-economic benefits that stevia cultivation is bringing to South America. While our competitors are just beginning to explore co-operations in Paraguay and South America, we are yielding the benefit of several years of pre-existing investment in a 100 per cent subsidiary in Paraguay. This coupled with the proprietary high yielding stevia strains developed internally and registered with Plant Breeders Rights inevitably gives us strong demonstrable commercial advantages. This is a significant day for stevia growth and PureCircle in the region".
Enquiries
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PureCircle Limited (www.purecircle.com), |
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Magomet Malsagov, Managing Director |
+60 1 2388 8049 |
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William Mitchell, Finance Director |
+44 7974 005 163 |
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Westport Communications |
+44 20 7065 2690 |
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Alan Frame |
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Jeanette Bishop |
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RFC Corporate Finance Ltd |
+61 8 9480 2500 |
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Stephen Allen |
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