The Rentech management declared that its subsidiary company New Englad Wood Pellet had reacquired the controlling interest of the Allegheny Pellet Corporarion. Therefore, New England Wood Pellet became the major producer of wood pellets at the U.S. market.
The pellet plant of the Allegheny Company, situated in Youngsville, the State of Pennsylvania is the fourth enterprise of New England Wood Pellet, which was started in 1993. It is expected to fully integrate it into the company’s structure. The wastes from the local saw-mills are used as raw material, and the pellets are being sold thanks to the retailers, in hypermarkets and also at the wholesale market. Due to the favourable location of the suppliers who are in close proximity to the enterprise, the value of raw material has remained relatively stable throughout the entire period of his work.
New Englad Wood Pellet intends to increase the annual production volume from 36000 tonnes to 50000 tonnes and to convert the enterprise from a four-day mode of operation to a seven-day one. The increased volumes will help satisfy the constantly growing demand for pellets in the State of Pennsylvania in New York.
According to the preliminary calculations, if the enterprise works at its full capacity, it will make an annual profit of 10 millions of dollars and 1, 5 millions of dollars of tax deductions. The estimated worth of this transaction is about 7 millions of dollars which have been allocated by TD Bank, N.A. on terms of a five-year loan.
