Bunge Limited (NYSE: BG) announced that its European subsidiary, KBBV, and Diester Industrie received approval from the European Commission to create a joint venture specializing in the production and marketing of biodiesel (vegetable oil methyl ester). The new company will be called “Diester Industrie International (DII)”.
DII will group together Bunge and Diester Industrie’s biodiesel assets in Europe, except those in France. Diester Industrie will own 60 percent of the joint venture and Bunge 40 percent.
DII will develop its activities in Europe within the framework of the EU directive promoting biofuel use. This directive defines biofuel incorporation rates and fiscal support measures for the EU. DII will initially produce biofuels in Marl, Germany; Bruck, Austria; and Livorno, Italy. Total production capacity is expected to reach more than 430,000 tons. Bunge’s European oilseed processing operations will supply a significant portion of the vegetable oil used by DII to create biodiesel.
“The creation of this joint venture is a step ahead to better meet the growing need for biofuels in Europe,” said Jean-Louis Gourbin, CEO, Bunge Europe. “In addition, it will better allow Bunge to supply vegetable oil for both food and non-food uses, for the benefit of all of our customers.”
Diester Industrie is a subsidiary of Sofiproteol, a French group operating in the oilseed sector.
About Bunge Limited
Bunge Limited is an integrated, global agribusiness and food company operating in the farm-to-consumer food chain. Founded in 1818 and headquartered in White Plains, New York, Bunge has 25,000 employees and locations in 32 countries. Bunge is the world’s leading oilseed processor, the largest producer and supplier of fertilizers to farmers in South America and the world’s leading seller of bottled vegetable oils to consumers.
Source: PRnewswire Oct. 04, 2005.