Lantmannen Agroenergi, Neova to merge pellet operations
Lantmännen and Neova AB are merging their respective wood pellet businesses to become the market leader in wood pellet solutions. The new company will include Neova's wood pellet business in Sweden and the corresponding Lantmännen Agroenergi businesses in Sweden and Latvia.
The merged company will have an annual turnover of around one billion Swedish kronor and 160 employees. The company will continue to market its products under the same brands as before—namely Neova Pellets Agrol and Agroenergi. The company will be the market leader in Sweden and a strong competitor in the Baltic region which offers substantial growth potential. Demand for processed solid biofuels is expected to rise sharply in Sweden and the rest of Europe.
"In order to meet exacting customer demands, we need to continue to lead the way in product and services development and offer the most reliable products on the market. The merged company will be in an even better position to meet future market challenges and create a platform for continued development of our value proposition to our customers," said Torbjörn Claesson, CEO Neova.
"Together, we will create a competitive company with big opportunities. Our customers will gain an even better proposition from a sustainability perspective—for example, we will be able to optimize our logistics in an even efficient way than now," said Lantmännen Energi Sector Manager Carl von Schantz.
Andreas Green, MD of Lantmännen Agroenergi, will head the merged company from its head office in Jönköping, Sweden.
"I am really looking forward to leading the development of the new company and together, we will be able to further develop and improve both our customer offer and our efficiency," said prospective MD Andreas Green.
The company will take the form of a joint venture with Lantmännen and Neova each having a 50 percent stake. The merger is expected to be completed in the first six months of 2014 following approval by the competition commissions concerned.