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Company to manufacture fuel pellets in Thailand

By Erin Voegele
Web exclusive posted March 6, 2009, at 9:53 a.m. CST

Through its wholly owned subsidiary Natural Fuels Industries and its Thailand-based affiliate Natural Fuels Industries Co. Inc., Vega Promotional Systems Inc. recently announced it has entered into a Letter of Intent to acquire a manufacturing facility on the port of MAP Ta PHUT in Thailand.

NFI plans to retrofit the existing manufacturing facility to produce 8-millimeter sized fuel pellets and fire logs. According to Naider Mangi, NFI's project manager and chief operating officer, the fuel pellets will be manufactured from agricultural waste products, such as rice straw, corn and eucalyptus waste.

The facility is located on 50 acres of land on a deep sea port and includes various buildings with 200,000 square feet of manufacturing and storage space. Planned retrofits include the addition of new machinery, such as power cogeneration units, Mangi said. The facility will use a portion of the power that's produced; the remaining power will be sold back to the grid.

Once completed, the plant is expected to have the capacity to produce 500,000 metric tons of biomass-based fuel pellets annually. Mangi said retrofits are expected to take approximately three months. The company plans to have the facility running at full capacity by the third-quarter of 2009.

Approximately 20 percent of the pellets produced will be used locally in Thailand, Mangi said. The remaining 80 percent will be exported to customers in Europe and the U.S. The agreement allows NFI to use the deep sea port facilities and all necessary equipment to load and off load raw materials and finished product.

According to Mangi, NFI intends to develop three additional facilities in unnamed international locations. These facilities will produce both biomass-based products and biodiesel.
 

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