29 October 2007
The leading speciality chemicals company Perstorp has acquired the bio-oil business TallOil, thereby adding yet another product area to its range of bio-fuels.
The market for renewable fuels is expected to grow dramatically, not least in Europe. The production of these products will require access to renewable raw materials and leading-edge skills in the chemicals and process industries. Perstorp has identified bio-fuel as a new, attractive business area and is now taking the next step with the acquisition of the bio-oil business within TallOil AB, which provides products that replace fossil-based heating oils.
The acquisition will take place via the Perstorp Group’s newly formed company for bio-fuel business, Perstorp BioProducts AB, which also includes the business for Scandinavia’s biggest production unit for RME.
The initial phase deals with the Bio-Oils business area, which includes liquid, non-fossil products, such as pine tar.
“The acquisition is completely in line with our strategy of investing more in bio-fuel operations and widening our range of products,” says Perstorp’s President and CEO, Bo Dankis. “The business has the potential of boosting overall sales of our bio-fuel products to between SEK 1.5 billion and SEK 2 billion.”
Perstorp BioProducts AB will also take over the brand and company name. Perstorp BioProducts has the option of also buying the TallOil bio-ethanol business.
Furthermore, Perstorp is tying in Henrik Lundberg, a well-respected expert in the field of bio-fuels and founder and current CEO of TallOil AB.
About Perstorp BioProducts AB
Perstorp BioProducts is a company recently set up within the Perstorp Group, whose aim is to develop Perstorp’s activities in the field of bio-fuels and components. The company will run Perstorp’s existing RME and glycerol business.
About TallOil AB
TallOil is a European bio-fuel and bio-energy sector company. TallOil was founded in 1993 with Sweden as its home market. TallOil provides a range of bio-oils, including pine tar, as a cost-effective and environmentally-sound alternative to fossil-based heating oils. The company was restructured in spring 2007 and the various business areas are now being sold to relevant buyers.