27 November 2007 13:48 [Source: ICIS news]
STOCKHOLM (ICIS news)--Swedish agro company Lantmannen said on Tuesday that there had been a "small improvement" in pricing which has given the firm respite of about a month from its plan to mothball its biodiesel plant.
An undisclosed customer has offered a better price for the firm's biodiesel output.
“The price of rapeseed oil is far from stable. The price of biodiesel must come up a bit more for reasonable margins,” said Per Erlandsson, plant manager at Lantmannen’s Karlshamn plant.
The price of the by-product glycerine has also risen considerably in recent months.
Lantmannen said in early November it would mothball its biodiesel plant from 1 January 2008 due to high rapeseed oil prices that could not be passed on to end users.
“The threat of closure is still there. We will make a decision in December. If the trend of better prices continues, then maybe we will cancel the mothballing,” he added.
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