08.07.2019 | Press releases
VERBIO acquires Biodiesel Facility in Dain City (Canada) - closing of transaction completed
n Closing for VERBIO Diesel Canada Corporation’s acquisition in Ontario completed
n Further step into growing North American biofuels market supporting VERBIO’s strategy of growth and globalization
Dain City (Canada)/Leipzig (Germany), 8th July 2019 – German biofuel expert VERBIO further expands to North America. VERBIO Diesel Canada Corporation - a VERBIO affiliate - successfully closed the acquisition of a biodiesel facility in Dain City (Ontario, CN) on 5th July 2019. Signing of purchase agreement between VERBIO and Atlantic Biodiesel Corporation was already announced on 2nd May 2019. Closing was subject to certain conditions which have now been fulfilled and transaction has been completed.
The plant has an annual production capacity of approximately 150,000 tons of biodiesel and 18,000 tons of raw glycerin. Production is likely to be recommenced in August 2019.
Promoting international growth and globalization
“The political conditions leave us with only little potential for growth in the German biofuels market, hence our expansion focus is on Asia and North America. The new biodiesel facility is perfectly equipped to implement our leading technology. Furthermore, we retain well-experienced employees who operated production in the past. Another advantage of the plant is the excellent connection to the railway infrastructure making it easy to bring in raw materials and deliver goods to the market quickly. The total package convinced us. We are positive that Dain City will be a perfect base for VERBIO to enter into the North American biodiesel market”, VERBIO COO Theodor Niesmann says.
“The North American biofuels market is in demand of approximately nine million tons of biodiesel each year – and that number is continuing to rise. This opens up promising strategic and economic perspectives for further internationalization making VERBIO more independent from the ups and downs of the European biofuels market”, Theodor Niesmann concludes.
Biodiesel and crude glycerin capacities significantly increased
North American biodiesel is based on soybean and canola oil. Canola is similar to rapeseed oil which is mainly used for European biodiesel production. The joint product glycerin is used in the cosmetics, food and pharmaceutical industry. VERBIO has operated two biodiesel plants in Germany since 2001 the production capacity of which comes to 470,000 tons biodiesel per year. Combined with the additional capacity of the Canadian plant VERBIO’s total production capacity increases to around 620,000 tons biodiesel per year.
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