A Swiss energy trading company was considering the purchase of a French biodiesel plant in 2017. The interim manager was brought on board to evaluate the plant, conduct the due diligence and lead the purchase negotiations. He then remained with the client to plan and supervise the refurbishment of the plant with the engineering team. He was also mandated to initiate the purchase and transportation of raw materials as well as the marketing of the products - primarily in Switzerland.
Biodiesel plant recommended for purchase after thorough due diligence
The previous owners of the French biodiesel plant had gone bankrupt. As an expert in trading renewable energies, the interim manager had previously done business with this plant and was therefore very familiar with its strengths and weaknesses. During the very thorough due diligence, the interim manager worked with specialist engineers to assess the condition of the plant, its production capacity, environmental compatibility and potential for refurbishment - and recommended the purchase of the plant following an additional analysis of the market potential. The client subsequently acquired the plant from the insolvency administrator.
Restructuring plan and expansion implemented in just a few months
In the course of the due diligence, the interim manager had already drawn up a restructuring plan, which was put into action from the day of the purchase. The most important aspects of the plan were the attention to product quality and the flexibility of the plant to process a variety of raw materials, despite being a continuously operating plant. In addition, the production capacity was increased according to the interim manager's specifications in line with the market size and availability of raw materials.
The plant required new storage tanks, additional reactors, a new distillation unit, new control technology and a new laboratory for quality control. Once the tenders for the modules had been received, the interim manager evaluated the bids and awarded the contracts. The conversion work began in January 2018 and was completed in six months.
Audits successfully completed and import permits obtained
Parallel to the conversion work, the interim manager set about meeting the regulatory requirements for importing the French biodiesel into Switzerland. Customs authorizations are required to import biofuels into Switzerland. With his expertise in this difficult approval process, the interim manager played a key role in ensuring that his client was able to successfully complete several audits with the French plant and thus obtain the necessary permits.
Results rise steadily to more than EUR 20 million
After the plant was handed over to the newly hired production team, the interim manager focused on the trading process. He turned to his network to buy and sell the raw materials and products and to trade the carbon credits produced during the process. As commodities are traded on a spot basis and the products are sold on annual contracts, there is significant risk. Trading therefore involved tight management of the risk. In the years 2019 to 2022, the interim manager was able to continuously improve the result. in 2022, it reached a high of more than 20 million euros.
Successor trained and management handed over
In 2021, the future managing director was selected and hired. The interim manager trained his successor and transferred more and more responsibility to him until the new Managing Director took over the management completely at the end of 2022.
