Pure Biofuel holds partnership meetings
We've just completed an excellent week of meetings with our partners to begin negotiations on securing off-take agreements in 2019/2020 season. While our team has been working hard in the office making sure our deliveries are on time and completing winter '19, we've been in the European and Siberian part of Russia visiting key partners to begin negotiations in 2020.
Wood Pellet capacity in the region is increasing year on year, and among the companies we have established working relationships with are some of the largest new factories being built in the country. Russia is modernising their wood pellet production quickly, with two new factories supplying 120,000 and 90,000 Tonnes per annum respectively. Given that Russia’s total export capacity is 1,000,000 - 1,500,000 Tonnes this accounts for up to 15% of current supply.
Focus on supplying premium wood pellets to the United Kingdom
New agreements along with existing will likely see Pure Biofuel the largest supplier of premium wood pellets to the United Kingdom from the region. In identifying key partners we particularly value cutting edge technology in the pelletisation and packaging process. Today some of the largest saw mills and paper companies are developing modernised pellet manufacturing facilities and choosing Pure Biofuel as their partner.
When we work with existing plants we identify and selecting high quality pellets and finance modernisation of strategic factories. We use the highest quality selection of raw materials, and products. This coming summer we have bigger plans which are confidential but due to be shared with our partners in May.
Summary of the Meetings
This was a productive trip, it was great to catch up with our SPB team again working incredibly hard on the logistics and supply side. Managing the number of vehicles, quantities each week can be a difficult job, with many avenues for human error so I'm always quite impressed of how well our small team manages.
On our supply side I'm happy to share with you that one of the first partners which we started work with the help of our finance has now improved to create incredibly well oiled factory capable of making our Pure Wood Pellets, one of the best pellets I have ever seen. This is not an easy task as a lot of care and attention needs to go into the raw material and production process which most places are not capable of doing.
However, Pure Biofuel have tough work ahead, demand has outstripped supply for the past three winters and each summer we are asking ourselves how we can satisfy our customers insatiable demand in Winter. Partnership agreements planned well in advance will help us to grow in the future along with other initiatives we are building. In the meantime we will continue to delivery an outstanding product along with our friendly customer service.