Praj Industries secures Major orders from USA with breakthrough in Midwest ethanol industry

Praj Industries Ltd has announced that the Company continues to record significant order intake from USA In the last quarter of 2006 (Oct-Dec) the Company contracted the second phase orders from Cilion for its Imperial County project as also from Missouri Valley Energy for its Meckling, South Dakota project.

While the first phase (orders received earlier) involved supply of technology package, the second phase deals with supply of equipment. Additionally, the Company also received an order, for USA’s first sugarcane based ethanol project.

Aggregrate contract value of these orders is in excess of Rs 1700 mln.

The Imperial County project is the third project of the Company for the Cilion Group. Cilion will produce 110 mgpy (400 mln litres per annum) ethanol from this facility.

The order from Missouri Valley for a 55 mgpy ethanol plant heralds the Company's entry into Corn Farmer's Cooperative Sector in the mid-west of USA. Missouri Valley Energy LLC is promoted by Glacial Lake Energy, an established name in ethanol industry, who operate an ethanol plant in the mid-west and are currently engaged in the construction of three greenfield ethanol facilities.

In another major development, the Company got a breakthrough in the sugarcane belt of USA. Louisiana Green Fuels LLC has awarded a contract to the Company for an integrated 23 mgpy ethanol plant using sugarcane based feedstocks. This plant will be located at Lacassine, Louisiana, adjacent to an existing cane syrup mill.

"In the very first ,year of entry into USA, Praj has achieved sizable business resulting into capacity addition in the region of 700 mgpy by way of Paj technology and equipment from many prestigious clients", said Shashank Inamdar Managing, Director, of the Company.

Source : Equity Bulls

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