Strengthening Neste's feedstock sourcing and pre-treatment capabilities
In 2020, we completed major acquisitions to strengthen our global renewable feedstock sourcing and pre-treatment capabilities.
In May 2020, Neste acquired 100% of Mahoney Environmental (Mahoney), a collector and recycler of used cooking oil in the United States, and its affiliated entities. With the acquisition Neste will gain access to a substantial volume of used cooking oil as well as a platform to grow our raw material supply chain in North America. The transaction will enable Neste to enhance its competitiveness in the global waste and residue raw material market.
The Mahoney acquisition was followed by another major acquisition in Rotterdam when Neste acquired 100% of the Dutch Count Companies BV’s Count Terminal Rotterdam BV and its supporting entities. Count Terminal Rotterdam stores, refines and blends renewable waste and residue-based raw materials in the Rotterdam harbor area. Count Terminal Rotterdam will be the first terminal asset Neste owns for renewable feedstock aggregation, thus enabling Neste to further develop its raw material logistics for the future. Count Terminal Rotterdam and Neste Demeter have had a successful long-term collaboration at the site.
Both of these acquisitions support Neste’s efforts to build a global renewable waste and residue raw material platform that can keep pace with the world’s growing demand for renewable products. The transactions will also enhance Neste’s competitiveness in the global renewable waste and residue raw material market.
Lastly in October 2020, Neste agreed to acquire Bunge's refinery plant in Rotterdam to increase raw material pretreatment capacity for the production of renewable products. The acquisition of the refinery plant supports our global growth strategy in renewables. It allows Neste to accelerate the scaling up of its renewable raw material pretreatment capacity, which is an important driver for expanding the use of waste and residue feedstocks and increasing the feedstock flexibility. The closing of the transaction is subject to the fulfillment of customary closing conditions and regulatory approval.