PHI Group and AG Materials to jointly build wood pellet plant in Florida

PHI Group, a company focused on energy and natural resources, has signed an agreement with Alabama-based AG Materials to jointly set up a 200,000 tonne wood pellet mill in Florida, US.

A statement released by the companies says that the joint venture secured approximately 400,000 tonnes of Southern Yellow Pine feedstock per year from a reliable industrial source for the wood pellet factory. The facility will be build on a 15 acre site in Live Oak, Suwannee County, about 85 miles from Jacksonville, Florida.

The two companies are currently in the process of negotiation to purchase the machinery and equipment for the plant, including PM30 pellet machines, manufactured by Austria-based Andritz Group.

Henry Fahman, chairman and CEO of PHI Group, says: 'We believe the conditions are very favorable for our joint venture, thanks to the reliable source of feedstock, logistics, and foreseeable growing market demand.'

Timothy Garner, president of AG Materials, adds: 'We consider this a very special and unique opportunity which can potentially create substantial long-term value for shareholders of both companies.'