German Biodiesel Company Cuts Output after Surge in EU Imports


Natural Energy West— Germany-based renewable fuel producer—announced reduction of biodiesel output by 50 percent due to surging European Union imports from Argentina and Indonesia, on April 9, 2018.

The company revealed that the output cut will be immediate and for an indefinite period. The company produces around 240,000 tons of biodiesel a year at its plant in Marl and is jointly owned by German cooperative AGRAVIS, agribusiness Bunge, France’s Diester International, and German oilseeds crusher C. Thywissen.

EU producers reported that biodiesel from Argentina and Indonesia receive unfair state support that allows it to be sold at low prices in Europe. Archer Daniels Midland Co—a U.S.-based agribusiness group—said that it was suspending production at a major biodiesel plant in Germany due to an increase in cheap imports. Natural Energy West also remarked about its production cut, blaming dumped biodiesel imports from Argentina and Indonesia, which have been prevalent in the European market since the winter.

The company revealed that it would continue producing oil only to meet existing contracts and not engage in any surplus production.

“If the German government and the European Commission do nothing against the unfair trading practices undertaken by Argentina and Indonesia, the European (biodiesel) industry and the farming sector, which supports it, will face damage that threatens its existence,” said Natural Energy West CEO, Detlef Volz.

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