NETHERLANDS— Bunge Loders Croklaan has announced plans to build a new factory in the Netherlands to boost its capacity for sustainable plant-based oils and fats.
The plant-based lipids subsidiary of agricultural commodity trading giant Bunge Ltd. said it will invest more than €300 million ($346.5 million) in the facility.
Construction of the plant is expected to begin at the end of 2022 and is expected to be ready for commissioning by 2024.
Bunge said that once completed, the plant will replace the Maasvlakte refinery in Rotterdam that Bunge sold to Neste Corp. at the end of 2020 for €258 million.
In addition, production at Bunge Loders Croklaan’s location in Wormerveer will shift to the Port of Amsterdam facility in phases during 2025, Bunge said.
“The new facility enables us to offer a broader and more innovative product portfolio of sustainable plant-based oils and fats that better positions us to meet future market demand,” said David Vandermeersch, vice president EMEA Bunge Loders Croklaan.
“The new plant will be built according to the latest technological standards, resulting in a highly efficient and sustainable facility with direct energy savings of 40% and an expected CO2 reduction of 90% by 2030.”
Full-year earnings forecast updated
Earlier, Bunge Ltd raised its full-year profit outlook for a third time this year amid improved demand for food and renewable fuel as pandemic restrictions ease.
Bunge had a stronger-than-expected third-quarter result driven by robust oilseed processing margins which more than offset a sales decline in the trader’s core agribusiness and its refined and specialty oils.
Net income attributable to Bunge rose to US$653 million, or $4.28 per share, in the quarter ended Sept. 30 from US$262 million, or $1.84 per a share, a year earlier.
Adjusted earnings of $3.72 per share, up from $2.47 a year ago, while revenue totaled US$14.12 billion, up from US$10.16 billion a year earlier.
St. Louis, Missouri-based Bunge now expects full-year adjusted income to be at least US$11.50 per share, up from a previous outlook of at least US$8.50 per share.
Bunge expects strong vegoil demand to elevate earnings above baseline levels “for the next couple of years,” Heckman said.
Higher energy costs, however, may squeeze margins and could curb crushing rates in some regions, but heckmack said that the company was ready to pushback, if margins get squeezed by the energies.
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