US Ethanol Industry Eyes Valero's Bid For VeraSun
Just over a year ago, ethanol manufacturer VeraSun Energy Corp. was one of biofuels’ fastest–rising stars. The Sioux Falls, South Dakota–based company had signed partnerships with General Motors Corp. and Enterprise Rent–A–Car Co., was rapidly expanding its production capacity and had announced mergers with ASAlliances Biofuels and US BioEnergy Corp. that would make it one of the largest ethanol companies in the country.
...The company often tries to buy underinvested or distressed assets at a good price and then to build them up to make them profitable or expand them, he said. Day hinted at the possibility that Valero could expand the plants, saying that the refineries are in good locations that would give Valero the ability to add cellulosic technology, “should it become available.” Valero last month invested in cellulosic–ethanol startup ZeaChem Inc.
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