10 January 2013 18:39 [Source: ICIS news]
MEDELLIN, Colombia (ICIS)--Delek US Holdings has agreed to purchase a biodiesel facility in Cleburne, Texas, from EQM Technologies & Energy for approximately $5.3m (€4.1m), the refiner and logistics company said on Thursday.
The transaction is expected to close on or before 23 January, the company said.
“This acquisition further integrates our operations by improving our feedstock flexibility for blending biodiesel at our Tyler refinery,” said Uzi Yemin, CEO of Delek US. “We will continue to explore opportunities to grow our business and return value to our shareholders during 2013.”
The biodiesel facility has a production capacity of approximately 12m gal/year (45m litres/year), according to Delek.
Delek US said it intends to spend approximately $3m during 2013 to improve the feedstock flexibility of this facility. Presently, the facility produces biodiesel exclusively for Delek US and its affiliates under a tolling agreement. The tolling agreement will terminate upon completion of the deal.
Biodiesel is an alternative fuel, produced from renewable resources. The most commonly used feedstocks are rapeseed, soy and palm oil.
($1 = €0.77)
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