Re-refiner Avista Oil Acquires Majority Holding in Dutch Refining Re-refinery
AVISTA OIL AG, one of the leading European used oil recycling enterprises, or “upcycling” (defined as using every aspect of waste as value) enterprises, has increased its holding in the Dutch North Refining and Trading N.V., Delfzijl re-refinery from 42% to a majority holding. Following the takeover of the shares of the co-shareholder Dusseldorp Holding Inzameling en Recycling B.V., in May of this year, the group took over another 33% from the Dutch van Gansewinkel Groep. As of August 20, 2012, AVISTA OIL holds a majority holding of about 75% in the Dutch re-refining market leader.
“This is a great investment for us, and we are convinced that it will continue to be a great one in the future for all the parties involved“, Bernd Merle, the CEO of AVISTA OIL AG stated. “Our majority holding in North Refinery is another milestone within our international growth strategy and will strengthen not only our strong organic growth but also our market position in Europe.”
North Refinery has vast facilities for accepting used oils for the production of lube distillates, the precursor of the AVISTA OIL Kernsolvat® base oil, and for their recycling to flux oils. Oil-water composites from shipping are accepted and recycled. The annual capacity of North Refinery for the processing of products containing oil into new raw materials and energy components is approximately 200,000 tons.
“AVISTA OIL expects an increase in quality and capacity with North Refinery in the next few years, due to investments. The Delfzijl site of North Refinery offers optimum opportunities for expanding the production of base oils“, Merle says.
With North Refinery, AVISTA OIL now has another logistically convenient North Sea location, thus connecting the oil upcycling refineries of Dansk Olie Genbrug in Denmark and the Dollbergen mineral oil refinery, Germany, which are already part of the Group, to form an efficient logistic upcycling triangle, which also provides for the further improvement of the connection to the American AVISTA OIL upcycling refinery in Peachtree City, Georgia.
With this acquisition, AVISTA OIL was successful in significantly increasing its influence and control in the North Refinery company.
“With the inclusion of North Refinery in AVISTA OIL we can achieve a considerable benefit for our customers and suppliers by enlarging our portfolio, apart from acquiring growth potentials. Thanks to the excellent location of North Refinery by the North Sea, the logistics of the whole group will be optimized, which will enable us to react more flexibly to the requests of our customers and suppliers”, Marc Verfürth, Head of Logistics, says.
Johannes Bos, the managing director of North Refinery, expects continuous growth through AVISTA OIL’s expansion of its holding: “I expect a growth for the company due to the synergies which have now become realisable. With North Refinery we now not only have an easily accessible site but also a large processing capacity within the industry, which is sustainably improved by the market and production experience of AVISTA OIL. The already pursued path towards compliance will be continued without any restrictions, so that, together with AVISTA OIL, we will be best positioned for the future.”
AVISTA OIL, founded in 1951, has experienced continuous profitable growth, and serves its customers along the entire value chain: from collection and services in relation to used oil to upcycling and to the international marketing and distribution of high-quality lubricants and coupled products. With its environment-friendly AVIeco cycle concept AVISTA OIL offers comprehensive solutions for the resource-sparing supply and disposal of lubricants. Under the umbrella of AVISTA OIL AG, a range of subsidiaries and associate companies are bundled which cover the whole range of functions from collection & logistics, recycling and the production of lubricants, as well as international distribution. AVISTA OIL has a workforce of approximately 550 employees at four refinery sites and further sites in Europe and the US.
The North Refinery, which was founded in 2001, processes an annual of 200,000 tons of oil containing products into new raw materials and energy components. North Refinery is active in the European market with a team of 55 employees.