17 May 2012 17:20 [Source: ICIS news]
LONDON (ICIS)--The mothballing of a biodiesel plant owned by Switzerland-based producer Biopetrol is unlikely to significantly affect the European biodiesel market, a source said on Thursday.
Biopetrol Industries AG announced on 15 May that it would be mothballing its 250,000 tonne/year plant in Pernis, the Netherlands.
“The market conditions have remained very weak since the beginning of the year. As a consequence of this challenging environment, we are taking decisive action to minimize our cost base by concentrating production at our locations in Rotterdam-Botlek and Rostock,” said Biopetrol's CEO Maarten Roelfs.
However, sources in Europe do not expect the closure to greatly impact the biodiesel market, which has been experiencing increasingly quiet conditions in recent weeks.
Lack of demand and healthy supply have meant producers are selling biodiesel below replacement costs, which has put pressure on production margins.
“The closure certainly won’t hinder the market,” one European biodiesel producer said.
However, other sources deem it too early to speculate but agree the closure will take some liquidity out of the market.
($1 = €0.79)
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