Neste to acquire US based Agri Trading to strengthen its renewable raw material trading and sourcing to serve increasing customer demand for renewable and circular solutions
Neste Corporation, Press Release, 7 September 2021 at 5.05 pm (EET)
Neste has agreed to acquire 100% of Agri Trading, one of the largest independent renewable waste and residue fat and oil traders in the United States, and its affiliate entities.The transaction is subject to the completion of customary closing conditions and regulatory approval.
“This agreement supports our renewables growth strategy and further strengthens our global renewable raw material sourcing as well as our footprint in the United States. Agri Trading complements our previous acquisition of Mahoney Environmental in the United States with its wide trading network of renewable raw materials compounded with efficient logistics. I am happy to welcome Agri Trading to be part of Neste’s journey in creating a healthier planet for our children,” says Neste’s President and CEO Peter Vanacker.
“Combating climate change is an urgent priority for the United States, and renewable products are a much needed part of the solution because they enable climate action now,” says Jeremy Baines, President, Neste US, Inc. “With this transaction, I am proud to say that Neste is collecting and turning even more locally sourced feedstock into renewable products to power America’s transport system, keeping new greenhouse emissions out of the atmosphere and cutting pollution.”
Neste refines waste, residues and innovative raw materials into renewable fuels and sustainable feedstock for plastics and other materials. This is possible thanks to its proprietary NEXBTL technology – a unique platform that allows the company to turn a wide variety of renewable waste and residues and oils into premium fuels and other products.
Agri Trading is based in Minnesota and was established in 1977. It has become an industry leader in trading animal fat waste, used cooking oil, technical corn oil, and other vegetable oils throughout the lower 48 States, Canada, Mexico, and Europe. The company manages all aspects of transportation, logistics, transloading, and export services, providing on-time pick-up and delivery.
The transaction supports Neste in its efforts to build a solid, resilient and flexible global waste and residue raw material platform that can keep pace with the customer’s growing demand for renewable products. Together with previously announced acquisitions of IH Demeter, Bunge Loders Croklaan and Count Terminal in the Netherlands, and Mahoney Environmental in the United States, Agri Trading will also enhance Neste’s competitiveness in the global waste and residue raw material market.
Vice President, Communications
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Neste in brief
Neste (NESTE, Nasdaq Helsinki) creates solutions for combating climate change and accelerating a shift to a circular economy. We refine waste, residues and innovative raw materials into renewable fuels and sustainable feedstock for plastics and other materials. We are the world’s leading producer of renewable diesel and sustainable aviation fuel, developing chemical recycling to combat the plastic waste challenge. We aim at helping customers to reduce greenhouse gas emissions with our renewable and circular solutions by at least 20 million tons annually by 2030. As a technologically advanced refiner of high-quality oil products with a commitment to reach carbon-neutral production by 2035, we are also introducing renewable and recycled raw materials such as waste plastic as refinery raw materials. We have consistently been included in the Dow Jones Sustainability Indices and the Global 100 list of the world’s most sustainable companies. In 2020, Neste's revenue stood at EUR 11.8 billion, with 94% of the company’s comparable operating profit coming from renewable products. Read more: neste.com