19.01.2005: An agreement has been signed whereby Denofa's extraction plant (X-Works) for soybeans in Fredrikstad will continue to operate under a new group of owners comprising the Norwegian company Unikorn (40%), the Brazilian company Inlogs (40%) and Orkla (20%). The new company will have operating revenues of approximately NOK 900 million and around 50 employees.
The X-Works processes soybeans to produce raw soya oil and protein-rich soya meal for the animal and fish feed industries. The company has a strong position as a supplier of soya meal to the Norwegian and Swedish feed industries. The raw soya oil was previously processed at Denofa's fat refinery. This product will now be sold to other actors.
Denofa has undergone a comprehensive restructuring process. The fat refinery, which has been running at a loss in recent years, is currently being closed down. The X-Works has a strong, interesting market position but has been exposed to financial risk in connection with the purchase of soybeans from Brazil. The risk factors have been associated with the purchasing system and with Norwegian regulations relating to the limits for non-genetically modified soybeans. Denofa has now received the necessary clarification from the authorities and has reduced its risk by introducing a new purchasing programme for soybeans.
The new owners will take over effective from 24 January 2005 with accounting effect from 1 January 2005. The CEO of the company will be Øystein Haslum, CEO of Unikorn.
"We now have a good commercial basis for continued operation of the X-Works. Denofa's production of soy oil and soy meal is important for Norwegian and Swedish customers. Denofa is one of the few plants in the world that produces non-genetically modified soy oil and soy meal and where customers can at the same time be sure that the meal is salmonella-free. We will continue to build on the company's strengths," says Øystein Haslum.
About the companies
Denofa was established in 1912 and has produced oil and fat products for the food industry and supplied soy proteins and fish oils to the animal and fish feed industry. After the closure of the fat refinery, the company will consist of the X-Works, which produces raw soy oil, soy meal and lecithin. There is also a small speciality oil business that will not be part of the new company. This business has become part of Borregaard, which is Orkla's Chemicals division.
Unikorn is mainly engaged in trading in grain and other raw materials for the Norwegian flour and feed industries. Unikorn purchases grain and feed ingredients from Norwegian and foreign suppliers. These products are sold to flour mills for human consumption and as raw materials to animal and fish feed manufacturers through a well-developed, efficient logistics system.
Inlogs is a company in the Agrenco Group that specialises in trading in agricultural products and selling logistic solutions. The company finances Brazilian farmers and operates grain silos in several states in Brazil. Its products are exported from the Agrenco Group's own port terminal in Sao Fransisco do Sul. In 2004 Inlogs handled approximately one million tonnes of soybeans, 90% of which were exported to Europe and Asia.