Gunvor to buy idled Petroplus refinery in Germany
Gunvor has signed a purchase agreement to acquire the assets of Petroplus’ refinery in Ingolstadt, Germany, and related marketing activities, the independent oil trader said on Thursday.
The acquisition is subject to customary closing conditions and regulatory clearance from competition authorities.
The closing of the deal is expected in the third quarter of 2012, with support from the local and German state authorities, according to Gunvor Group officials.
Gunvor said it intends to restart operations as soon as possible. That follows the refinery’s closure in early February as a result of Petroplus’ ongoing financial woes.
The company said the Ingolstadt refinery has a “strong regional footprint” in Germany’s prosperous Bavaria region. It has a processing capacity of approximately 100,000 bpd.
The purchase of the refinery is in line with Gunvor’s infrastructure investment program and a strategy to become vertically integrated, the company said. Earlier this year, Gunvor also acquired the Petroplus refinery in Antwerp, Belgium.
“Just a few weeks after the successful reopening of the recently purchased Antwerp refinery, we are delighted to have signed a purchase agreement for what will be again a key asset for Gunvor as we look to confirm our presence in Europe and diversify our trading activity in Germany,” said Torbjorn Tornqvist, CEO of Gunvor.
“This will be achieved with the proven integrated business model and the strong German wholesale and consumer marketing force.”
Gunvor said it is committed to operating the refinery on a long-term basis and all existing employees, more than 400, will be retained.
“We have achieved our goal to secure the survival of the refinery and all the jobs,” said insolvency administrator Dr. Michael Jaffé.
“With Gunvor as a strong partner, we believe we found a sustainable solution for the benefit of all parties,” he added. “Also for the creditors in the insolvency proceedings, we will most likely achieve a very good result.”
Financial terms were not disclosed.
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