Neste to acquire U.S. renewable material trading company
Finland’s Neste has reached an agreement to purchase 100% of Agri Trading, one of the largest independent producers of renewable waste, residue fat, and oil in the United States, and its affiliates.
“This agreement supports and strengthens our renewables growth strategy. It also increases our global renewable raw material supply as well as our presence in the United States. With its extensive trading network and efficient logistics, Agri Trading is a complement to our acquisition of Mahoney Environment in the United States,” Neste’s President and Chief Executive Officer Peter Vanacker said.
“Combating climate changes is a pressing priority for the United States, but renewable products are a vital part of the solution because it allows climate action now,” said Jeremy Baines, president, Neste US, Inc.
Neste transforms waste, residues, and innovative raw materials into sustainable fuels and feedstock for plastics and other materials. The company’s proprietary NEXBTL technology enables it to transform a variety of waste, residues, and oils into premium fuels.
Agri Trading was founded in Minnesota in 1977. It is a leader in the trading of animal fat waste, used cooking oils, technical corn oil, as well as other vegetable oils, throughout the United States, Canada and Mexico. It handles all aspects of transportation logistics, transloading and export services.
The transaction will support Neste’s efforts to create a global waste and residue platform that is resilient, flexible, and adaptable to meet customer demand for sustainable products. Agri Trading, along with the previously announced acquisitions IH Demeter and Bunge Loders Croklaan and Count Terminal in the Netherlands, and Mahoney Environmental in the United States, will increase Neste’s market share in the global residue and waste material market.
Financial details and completion of the transaction were not released.