NEWS 8 FEED & ADDITIVE MAGAZINE May 2022 Finland-based Valio, a major player in the international dairy ingredients market, announced that it would sell its Russian operations to Velkom Group. Valio to sell its Russian operations to Velkom Group Valio has completed negotiations on the divestment of its Russian operations. Valio will sell the operations to Velkom Group. The transaction will take place immediately. The transaction includes Valio’s Russian operations and the processed cheese factory in Ershovo. The Viola® brand processed cheese sold and produced in Russia is also part of the transaction. With the transaction, Valio’s personnel in Russia will transfer to Velkom Group. The parties have decided not to disclose the value of the transaction. With the completed transaction, Valio’s operations in Russia have now ended. In 2020, Valio’s net sales in Russia were 87 million euros and accounted for approximately 5 percent of Valio’s global net sales of about 1.8 billion euros. Valio decided on 7 March 2022 to withdraw from operations in Russia. With this transaction, Valio is immediately withdrawing from all operations in Russia. Valio exports products to some 60 countries around the world. The total value of Valio’s international operations and exports is about 750 million euros annually, i.e. about 40% of Valio’s total net sales. Of the interested buyers, the Russian food producer Velkom Group was selected as the most suitable. Perstorp to double carboxylic acid production capacity Leading specialty chemicals company Perstorp plans to have extra capacity of around 70,000 tonnes/year for production of carboxylic acids onstream by 2024. The investment will enable Perstorp to increase output significantly and strengthen its position as the sustainable solutions provider. Increased capacity will meet growing demand in various high-value applications, including carboxylic acids for use in animal feed gut health and preservation products. Most of the output will be used in downstream production operated by Perstorp itself. Perstorp will build a new plant on the site of its existing carboxylic acid production operation in Stenungsund, Sweden. Like the original unit, it will be capable of producing acids from C3 to C9 chemistry, significantly strengthening the company’s portfolio. Both plants will be fully integrated into Perstorp’s Oxo production platform. Perstorp also uses carboxylic acids for its in-house production of various grades of food preservative (Profina™ CP) and animal feed preservative (ProSid™ MI 208). It is the only company in the world making these products with upstream integration. Sweden-based Perstorp will build a new plant to have extra capacity of around 70,000 tonnes/year for production of carboxylic acids onstream by early 2024.
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