In Europe, biochemicals company, SunPine is planning to construct a tall oil rosin production facility in Pitea, Sweden, and has contracted Neste Jacobs to perform EPCM (engineering, procurement and construction management) services. The facility is expected to be operational in the second half of 2015 and will deliver rosin to Lawter facility in Kallo, Belgium.
At the time the new rosin plant is up and running, SunPine will be producing three different products: Raw tall diesel – a feedstock used in the production of renewable diesel, rosin – a raw material used in the production of derivatives, including printing ink and adhesives, and tall oil pitch – an energy product used in the paper industry.
Neste Jacobs will carry out the project from its offices in Gothenburg, Sweden and Turku, Finland.
The last time the blog has reported about the tall oil industry was in June on this post.
Another news that recently just came out from Reuters is a report that owners of privately-held US-based Arizona Chemical, the world’s largest pine chemicals company, is looking to sell the company that could be worth over $1.5 billion. The company has ten chemical manufacturing facilities across the US, Britain, France, Germany, Sweden and Finland.
The pine chemicals industry is not that big and most are private companies so it will be interesting who will be interested in acquiring the company unless it will be another private equity firm. The good news is that most pine chemicals are considered specialty chemicals, which command premiums.