ABG acquires Oleos seed crushing plant

Australian Biodiesel Group Ltd. has completed the acquisition of Oleo Industries Pty Ltd.’s oil seed crushing facility in Moree, New South Wales. Australian Biodiesel paid US$3.25 million in cash and US$1.25 million in shares. The acquisition includes the land, buildings, equipment and storage tanks. Oil seeds including cotton, sunflower and canola are all suitable feedstocks for the production of biodiesel, all of which the facility is capable of crushing. Australian Biodiesel is also using the facility to trial mustard seed as an experimental feedstock, which is expected to commence before the end of the year. (October 3, 2006)