CMB strengthens DK position with Ekman acquisition

Danish trading firm Copenhagen Merchants Biomass (CMB) aims to strengthen its wood pellet market position in Denmark with its recent acquisition of forestry sales firm Ekman's bioenergy subsidiary, CMB chief operating officer Michael Hjorth Christensen told Argus.

Ekman Bioenergy will add around 150,000-200,000t/yr of wood pellet supply volumes to CMB's portfolio, including 40,000 t/yr of wood pellet production capacity at its Vildbjerg plant in Denmark.

The deal closed in late October and will be finalised once the Danish competition authority has approved the transaction, expected within the coming two months, Christensen said. The price for the acquisition was not disclosed.

CMB's production capacity in the US is expected to reach 350,000t at the start of 2022, following the start of operations at its 40,000-50,000 t/yr Effingham plant in December. These are in addition to the 40,000 t/yr Vildbjerg plant in Denmark.

CMB has a trading portfolio of more than 3mn t/yr of wood pellets. Global shipping and logistics company United Shipping and Trading acquired 60pc of CMB's shares earlier this year, with the remaining 40pc held by founding-family members and key senior CMB executives.

By Erisa Senerdem