The joint stock company Linas Agro Group has acquired Lignineko, UAB which owns great quantities of lignin - a raw material for biofuel. Trade in lignin biofuel will expand the range company's biofuel products and will strengthen its position in the business of biofuel trade. Linas Agro, AB run by Linas Agro Group, AB has acquired 100 per cent of Lignineko, UAB shares. The acquired company located in Zabieliskis village in Kedainiai region has 800 thousand cubic metres of lignin. Lignin is a secondary raw material for wood industry. It is a complex molecular compound found in dry wooden mass of plants. Former feedstuff additive producer in Kedainiai Kedainiu biochemija used to make feed yeast from lignin, however, the activities were terminated in 1992 after the rise of fuel and raw material prices; thus, large quantities of lignin have remained unused. “The European Union has obliged to reduce CO2 emission into the atmosphere by 20 per cent until 2020 as compared to 1990 and increase effectiveness of power usage as well as contribution of renewable energy sources at the same time. The latter objective can be easily achieved only on account of biofuel usage. We have been traded solid biofuel on the market since 2006. Also, we are constantly looking for extraordinary raw material that can be used as biofuel. For instance, in recent years we have been supplying sunflower husk granules from Ukraine to Poland. Meanwhile, lignin as a raw material for biofuel caught our eye a couple of years ago. We have been communicating with its suppliers and buyers in the neighbouring countries. The European Union has recognised lignin as a raw material for biofuel and included it into the standard EN 14961-1:2010 at the end of 2009. This decision has given us an impetus to join the business of lignin's preparation for biofuel and its trade, thus expanding our range of solid biofuel. We plan to supply approximately 50 thousand tons of lignin for LTL 7 million to the markets of Lithuania and neighbouring countries every year. We have thoroughly analysed the market and expect high profitability of this activity,” Linas Agro Group, AB Board Chairman Darius Zubas says. The company plans to dry and clean the acquired lignin until it is prepared for biofuel; and additional equipment will be assembled for this purpose. The general investments into this project will reach LTL 7 million. Investments are calculated to pay off in 4 years. About Linas Agro Group, AB Linas Agro Group, AB is an integrated agribusiness company engaged in international agricultural business, production and trade in agricultural produce and raw materials. It controls companies in Lithuania, Latvia and Denmark. The Group consists of the following companies: Linas Agro, AB, a Lithuanian company engaged in international trade in agricultural plant produce; Linas Agro, UAB controlling grain storages; Grūdų centras, KŪB (controlling grain storages in Kėdainiai, Kupiškis, Joniškis, Šiauliai and Vilkaviškis), grain trade company in Latvia - Linas Agro, SIA; international trade company in Denmark - Rosenkrantz A/S; Landvesta, ŽŪB, a group of companies controlling agricultural land; and Linas Agro Konsultacijos, UAB controlling agricultural companies. Financial year of the companies starts on the 1st of July. According to the data of the first half of the financial year the income stood at LTL 554,35 million while the net profit was LTL 25,7 million, also, 59% of income was gained from the trade of grain as well as oilseeds. In July-December 2009 the company sold 818 thousand tons of produce which is by 6% more as compared to 2008. As of February 17, 2010 Linas Agro Group, AB is listed on NASDAQ OMX Vilnius stock exchange. More information Arūnas Jarmolavičius Linas Agro, AB Project Director Linas Agro Group, AB Board Member Tel. 8 698 27855 Email a.jarmolavicius@linasagro.lt