27 September 2006 10:00 [Source: ICIS news]
LONDON (ICIS news)--Finland-based refining firm Neste Oil threw down the gauntlet to its competitors in the biodiesel market on Wednesday as it said it will be investing several billion euros on several new projects during the next 10 years.
The company has set a series of financial targets including a return on average capital employed after tax (ROACE) of at least 15%, a target leverage range of 25-50% and a dividend payout ratio of at least one third of underlying profits.
President and ceo Risto Rinne revealed that Neste Oil will be forging partnerships with firms across various market sectors as it sets about constructing several new biodiesel production facilities.
Neste Oil will also continue to invest heavily in new equipment and increasing conversion capacity at its existing refineries in Porvoo and Naantali along with expanding its research and development into biofuels.
Rinne stated: “We are aiming to be the world's leading biodiesel producer, which means production volumes of millions of tons annually. We will be even more active in research and development in the biofuels area to utilise different renewable raw materials.”
Timo Peltola, chairman of Neste Oil's board of directors, added: "Neste Oil's largest-ever investment, in a new diesel production line at the Porvoo refinery, is due to be completed this winter, and will enhance the company's performance and cash flow significantly. We have concluded that a strong growth strategy, based on biodiesel production and driven by our own technology, is the best way of generating shareholder value.”
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