Gunvor Group has commenced operations at the former Petroplus refinery in Ingolstadt, Germany, having completed the acquisition of the refinery assets and relevant marketing activities, the commodity trading company said on Monday.
All regulatory and merger control approvals have been obtained. The official closing date was August 23, and the first crude vessel has already discharged to supply the refinery, according to company officials.
The German entities, which will retain all of their more than 400 employees, will be named Gunvor Raffinerie Ingolstadt GmbH.
Meanwhile, the refinerys German marketing arm will be Gunvor Deutschland GmbH. It will continue to serve the markets in Southern Germany and Upper Austria, thereby restoring important fuel supply and competition to the land-locked area, company officials said.
Gunvor is proud to welcome Ingolstadt's workforce to our growing and diverse family, said Gunvor Group CEO Torbjorn Tornqvist.
We intend to build upon the good and enduring customer relationships, and enlarge our trading activities in Germany and the Alpine region.
Gunvor said the refinery in Ingolstadt is among the most efficient refineries in Europe due to its skilled and highly experienced employees, as well as continuous investment in maintaining its assets in excellent condition
It also has strong local connections in Bavaria, one of the biggest growth regions in Germany.
The production capacity is 100,000 bpd. Depending on the product (bitumen, mogas, diesel, heating oil), the refinery served 20% to 30% of the market in Bavaria and the connected regions, Gunvor said.
The Transalpine (TAL) pipeline, which originates in Trieste, Italy, supplies crude oil to the refinery.
For Gunvor, the acquisition of the Ingolstadt refinery and the connected marketing activities is the first step to establishing a presence in Germany, it said.
Gunvor also strengthens its European market position, adding to its current refinery investment in Antwerp, Belgium.
Refineries complement Gunvor's trading function, which the company says can create greater operational efficiency across the supply chain.
Gunvor hopes to leverage its expertise and existing relationships with crude suppliers to gain access to the types of crude oils processed at its refineries.