Active Energy Group to acquire major Ukrainian chip producer

Active Energy Group plc (AEG, United Kingdom) has entered into a conditional agreement to acquire the entire issued share capital of Nikofeso Holdings, a Cypriot-registered trading and holding company with its principal subsidiary company, Nikwood, which specialises in exporting high quality wood chip for biomass power generation and MDF manufacturing in Ukraine, for a total consideration of GBP 3.75 million.

Richard Spinks, the CEO of AEG, commented, “The demand for wood chip/biomass is strong and expected to increase. We have the expertise and advantageous geographic locations to procure, process and ship quickly and efficiently and this will form a stable and profitable base upon which we can build.”

The Nikofeso Group is the largest Ukrainian supplier of wood chips for the production of Turkish MDF and with the support of AEG aims to become the leading Ukraine and Balkan states supplier not only for current MDF applications but also for the provision of feedstock to the European biomass power generation sector, having recently signed a sales contract with a new biomass power plant in southern Italy to supply wood chip as feedstock. AEG already runs a facility in Volyn region, at the very Ukraine-Poland border, and supplies European companies with logs, chips and pellets.