SAIPOL, French leader in biofuels with its Diester® brand and in the production of vegetable oils, is accelerating implementation of its strategic plan by diversifying its offer with innovative, more sustainable and higher value solutions. To achieve this, SAIPOL plans to concentrate its industrial activities on sites that are the best situated to process and valorize grain of French origin.
A NECESSARY AND AMBITIOUS RESPONSE TO A BIOFUELS MARKET EXPERIENCING PROFOUND CHANGE
Since 2015, SAIPOL has had to deal with several negative external factors that have severely hampered its competitiveness: competition from biodiesel made using palm oil and soybean oil, the weak structural exploitation of first generation biofuels, the growth of imports from Latin America, the aggressive trading of major global actors driving down prices and gradual changes to the European vehicle fleet towards non-diesel alternatives. Because of these factors, SAIPOL accumulated losses of €133 million between 2015 and 2018. Although this trend has now slowed, it is still affecting results in 2019.
SAIPOL 2023: A DIVERSIFICATION PLAN FOCUSED ON ENERGY AND FOOD TRANSITIONS
The company is accelerating its development in new and ambitious growth areas so that it can make a major contribution to French and European energy and food transitions by:
- Pursuing the launch of its 100% renewable biofuel, OLEO 100, and developing the supply of “high sustainability biofuels” in order to contribute further to reducing greenhouse gas emissions,
- Preserving profitable volumes of biofuels made from rapeseed for use in cold conditions (notably during winter) while adapting production volumes of first generation biodiesel in response to changes affecting the vehicle fleet,
- Continuing to grow sales of refined oils of French origin to the European agrifood industry and to major petroleum groups for co-refining in order to offer SAIPOL a broader market that creates value for its oils,
- Accelerating the marketing of food ingredients such as vegetable proteins, refined vegetable oils and sunflower or rapeseed lecithins.
SAIPOL 2023: AN IMPORTANT COMMITMENT TO SUSTAINING THE PRODUCTION OF FRENCH FARMING SECTORS
The SAIPOL 2023 strategic plan is based on the close links that bind the company and the French oilseeds sector. The company will thus refocus on sourcing its grain from the French Farm so as to protect markets for French farmers and foster the growth of premium, protein-rich products with high environmental value within different regions.
SAIPOL 2023: GROUPING INDUSTRIAL ACTIVITIES AT FOUR PRODUCTION SITES
The diversification of SAIPOL’s activities will be accompanied by necessary adaptations to the production volumes of first generation biodiesel. Thus SAIPOL plans to group its industrial activities in four plants situated at the heart of French agricultural production regions where the market is buoyant. Through a targeted investment program, and central to the strategic plan, the sites in Bassens, Grand-Couronne, Lezoux and Le Mériot will gradually become specialized in producing sustainable solutions with higher added value.
In parallel, SAIPOL is starting to search for long-term solutions for the sites in Sète and Montoir-de-Bretagne, the aim for 2020 being to identify opportunities for partnerships or sale that will preserve jobs and industrial activities. Regular updates will be provided to the teams concerned regarding progress with this search.
A subsidiary of the Avril Group, Saipol produces and sells in France refined vegetable oils for human foods, protein-rich oilseed meals for livestock feeds, biodiesel under the Diester® brand that is incorporated at a rate of 7%-8% in the diesel used by all diesel vehicles in France, and vegetable glycerin that has numerous industrial applications.
About the AVRIL Group:
Founded in 1983 at the initiative of farmers in order to assure long-term markets for French products, Avril is the leading industrial and finance actor in the vegetable oils and proteins sector.
It is present in France and internationally in sectors as diverse as human foods, animal nutrition and expertise, renewable energies and chemistry, through its portfolio of strong brands that are leaders in their markets: Oleo100, Sanders, Lesieur, Puget, Costa d’Oro, Matines, Bunica, Taous, etc.
In 35 years, the Group has changed in size but its purpose has remained the same: to create sustainable value in the vegetable oils and proteins sector while contributing to better foods for humans and preservation of the planet.
To fulfil its mission, Avril draws strength from its industrial activities organized around plant and livestock sectors, and from its experience in investment, operated through Sofiprotéol, its finance and development company.
In 2018, the Avril Group achieved turnover worth €6 billion. It counts 7490 employees working in 22 countries.
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