REG makes second US biodiesel facility acquisition in three weeks
The US-based Renewable Energy Group (REG) has announced the purchase of a 15-million (MM) gallon-per-year (gpy) biodiesel production plant near Atlanta, Georgia.
The multi-feedstock facility, which will operate as REG Atlanta LLC, features easy access to major transportation routes in the Southeast. REG acquired the former BullDog Biodiesel operation for cash and in-kind consideration of approximately $2.6 MM.
REG President and CEO, Daniel J. Oh, stated, "Once repaired, upgraded and restarted, the REG Atlanta facility will offer us additional long-term capacity to meet high-demand diesel markets across the Southeast."
The company has not yet set a production date for the restart of the facility, which has operated intermittently since January 2008.
REG tolled the facility from April 2011 through April 2012 to support REG's biodiesel sales in the Southeast. BullDog ceased operations in April 2012 due to a combination of poor market conditions and upgrades needed to make the facility more efficient.
Since 2008, REG has acquired 10 biodiesel-related firms or production facilities. Most recently, on Oct. 26, 2012, REG acquired a 15-MMgpy biodiesel facility in New Boston, Texas. This plant is slated to begin production in the first quarter of 2013.
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