Pellet merge in Sweden – Neova, a Vapo subsidiary and Lantmännen Agroenergi joins forces in an expanded Agroenergi
With a turnover of above 100 milion Euro, the expanded Agroenergi will be the largest pelletfocused company in Sweden. It will include Neova pellets in Sweden and Lantmännen Agroenergi corresponding operations in Sweden and Latvia. The merger is expected to be implemented during the first half of 2014 after approval by the relevant competition authorities.
Neova bring in 4 production plants to the 4 already exisiting in Agroenergi, adding up to 8 operating plants with a total capacity of appr. 700 000 ton and a prodcution of appr. 550 000 t. The new company will have 160 employees. Neither of Neovas district heating activites or peat operations or Lantmännens operations of district heating will not be included in the merger. The new company will focus on pellet production, trading and marketing of the pellets.
The combined company will be a joint venture owned 50% by Neova and 50% of Lantmännen.
Neova will bring in extra value to the JV in return of the 50/50 owner ship. The merger will be implemented during the first half of 2014 after approval by the relevant competition authorities. The products will be marketed under the same brands as before – Neova Pellets, Agrol and Agroenergi .
Agroenergi and Neova swedish production plants have so far have most focus towards the Swedish market and in a comment, Carl von Schantz division manager of Agroenergi say that they have great hopes for the fast expanding mid industrial segment. However the production unit in Talsi, Latvia, located close to a port is fully export oriented.
Andrew Green, current CEO of Lantmännen Agroenergi , will become CEO of the combined company headquartered in Jönköping
– I look forward to leading the development of the new company and that together we can develop and improve our product, says the proposed CEO Andrew Green.
Owner of Agroenergi is Lantmännen AB, an industrial and market group of companies owned by the Swedish farmers. Owner of Neova is Vapo OY, a state owned finish forest industry and peat producing company. Vapo do also have five pellet production units in Finland with a total capacity of 300 000 tons.
Lennart Ljungblom 2014-02-07