|  

Drax soon to acquire stake in two US pellet works

23.07.2021 − 

Following the takeover of Pinnacle Renewable Energy Group completed in mid-April, Drax Group also wants to acquire the 20% stake held by The Westervelt Co. in the joint venture Alabama Pellets. The 70% held by Pinnacle has been controlled by Drax since the deal was closed. The purchase price for the Westervelt shares amounts to US$29.7m. The agreement reached at the end of June is scheduled for conclusion before the end of July. This will give Drax a total share of 90%. The remaining 10% will remain in the hands of Two Rivers Lumber Co. as minority partner, which operates a southern yellow pine sawmill in Demopolis, Alabama, with an annual production capacity of approximately 200m bdft. The works, designed by the Canadian sawmill fitters The BID Group of Companies and built at an investment cost of US$65m, was put into operation at the end of 2017.

Alabama Pellets had put its first pellet works, geared to an annual production capacity of 270,000 t, into operation in Aliceville, Alabama, in 2018. The construction of a second works at the Two Rivers Lumber facility in Demopolis has reached a relatively advanced state. Production at the works geared to 360,000 tpa is scheduled to start up before the end of this year. According to the latest Drax release, the two works will then have a combined annual capacity of 660,000 t.

Tags of this news:

previous − Timber-construction sales revenue up 15.2% in April

18% growth registered in Russia’s pellet exports  − next