US Cargill confirms closure of Germany biodiesel plant

14 November 2012 14:53  [Source: ICIS news]

LONDON (ICIS)--Cargill will close its German joint-venture biodiesel plant near Berlin, but the company’s biodiesel plants at Frankfurt and at Ghent, Belgium, continue to operate, it said on Wednesday.

The US-based agribusiness firm was confirming German press reports that the 120,000 tonne/year plant in Wittenberge, west of Berlin, would be closed amid weak demand and oversupply on the European market.

The plant, known as Bio-Diesel Wittenberge, is a joint venture between Cargill and German agricultural cooperative Agravis Raiffeisen. It produces biodiesel for the European market.

In a statement to ICIS, Cargill said it had already agreed a “social plan” to take care of the 28 workers losing their jobs at Wittenberge. Cargill did not say when exactly the plant would be closed.

Cargill added that Bio-Diesel Wittenberge is in talks with a potential investor to acquire the site.

Meanwhile, Cargill's wholly-owned 300,000 tonne/year biodiesel plant at the Frankfurt-Hoechst chemical and industrial park, and its 250,000 tonne/year joint-venture biodiesel plant at Ghent, Belgium, continued to operate normally, the company said.

The European biodiesel industry is facing uncertainty from a European Commission proposal to limit the production of biodiesel from food crops.

Additional reporting by Kate Wilcock


By: Stefan Baumgarten
+1 713 525 2653



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