CGP MAKING THE MARKET IN HEMP
CGP SEALS US$10 MILLION INDUSTRIAL HEMP CONTRACT WITH MAJOR EUROPEAN INSULATION MANUFACTURER
October 28, l998 -- Consolidated Growers & Processors, Inc. [NASDBB: CGPR], through its wholly owned subsidiary CGP Europe, AG, today announced a US$ 10 million three year agreement with ALCOPOR (ALCN), a major European manufacturer of insulation, to deliver 18,000 metric tons of industrial hemp fiber for use in building insulation.
The contract represents one of the largest and most environmentally innovative steps taken to date to introduce the use of industrial hemp fiber into the mainstream building industry. Insulation made with hemp fiber is fire resistant, non toxic and has approximately the same R (resistance) value as traditional fiberglass insulation.
CGP is the first multi-national company to organize worldwide agricultural and marketing efforts for the versatile and potentially lucrative industrial hemp plant. Recently the company harvested over 1,000 acres of industrial hemp following its legalization in Canada and plans to cultivate over 2 million acres in the Canadian prairies over the next five years. CGP is also planning to announce the site of the first hemp processing facility to implement a technology that will produce hemp pulp for use in paper at a price competitive to wood pulp.