Vapo Terra sells the Turenki pellet factory to Versowood Oy

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Neova Oy's subsidiary Vapo Terra Oy and Versowood Oy have agreed on a business sale and purchase agreement whereby Vapo Terra sells the Turenki pellet factory to Versowood Oy.

The transaction is scheduled to be completed on January 1, 2024. The eight employees of the Turenki pellet factory will join the new owner as old employees. The parties have agreed that the purchase price will not be made public.

The parties have also tentatively negotiated a deal in which Vapo Terra would sell the Vilppula pellet factory’s production machinery to Versowood in 2025, should the factory’s raw material and drying energy run out.

According to Vapo Terra's business strategy, it will focus even more in the future on increasing the value of its land assets by  e.g. licensing solar and wind power parks. "With the deal now, capital will be freed up for this activity," says Pasi Koivisto, director of Vapo Terra's fuel business and real estate development.

"With today's asset deal, we are strengthening our pellet business. The Turenki factory has long been an important customer of Riihimäki sawmill in terms of sawdust deliveries, and with the deal made, our pellet production will increase to almost 100,000 tons. We see growth potential in bioenergy and especially pellets for the company," says Ville Kopra, CEO of Versowood Oy

Source: Versowood