DGAP-Adhoc: PETROTEC AG: Biodiesel producer announces short-time work

PETROTEC AG / Strategic Company Decision/Miscellaneous

20.01.2009 

Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Petrotec announces short-time work

Borken, January 20, 2009 – Petrotec AG (ISIN DE000PET1111), the
manufacturer of sustainable, climate-friendly biodiesel based on used
cooking oil, will temporarily halt its production of biodiesel.

Petrotec AG announced the introduction of short-time work as of January 30
until the beginning of March for its employees at the biodiesel plant in
Südlohn – Oeding, Germany. Previously the company already introduced
short-time work for its employees at the biodiesel plant in Emden, Germany,
on December 20th which is expected to last until the end of February and
has already been approved by the German Federal Employment Office
(BunBundesagentur für Arbeitdesagentur für Arbeit). As of today Petrotec
can not rule out that the short-time work will have to be extended for both
plants beyond these periods.

By ceasing its production of biodiesel the company is responding to
unfavorable market conditions which currently do not allow it to cover
production costs.

Due to the dramatic decrease in the crude oil price also biodiesel prices
dropped significantly. The currently unclear legal situation as regards
biodiesel based on used cooking oil also has a negative impact on the
marketing of biodiesel to the German blending market. Petrotec also applied
for short-time work in order to preserve the Company‘s tight liquidity
situation.

The division for collection and treatment of used cooking oil is not
affected from the short-time work.

Disclaimer
As far as this ad hoc release contains forward-looking statements, these
forward-looking statements are based on current assumptions and forecasts
made by the management of Petrotec AG and other information currently
available to Petrotec. Various known and unknown risks, uncertainties and
other factors could lead to material differences between the actual future
results, financial situation, development or performance of the company and
the estimates given here. Petrotec does not intend, and does not assume any
liability whatsoever, to update these forward-looking statements or to
conform them to future events or developments.

About PETROTEC
Since November 2006, Petrotec AG has been listed in the Prime Standard
segment of the Frankfurt Stock Exchange under WKN PET111, ISIN
DE000PET1111. Petrotec is one of the pioneers of the German biodiesel
industry. The company started as early as 1998 with the development of a
process to produce biodiesel from used frying and deep-frying oil.
Petrotec’s first industrial biodiesel production plant went turn-key in
2000. Petrotec’s proprietary technology is capable of transforming virgin
vegetable oils such as rapeseed, soybean or palm oil as well as
hard-to-process oils and fats such as used cooking oils, animal fats and
oils or fish oil in a single fully continuous process into biodiesel and,
thus, is truly a multi-feedstock technology. The annual capacity of the
plant in Borken (Westphalia), Germany, is 85,000 t biodiesel. In the first
half of 2008 a second production has commenced operations in the deep-sea
port of Emden with an annual capacity of 100,000 t. Unlike many of its
competitors, Petrotec in its ongoing operations has for years now primarily
produced biodiesel from used cooking oils in a fully continuous process.
Treated used cooking oils as feedstock for biodiesel production is up to 50
percent cheaper to procure than the rapeseed oil predominantly used by
Petrotec's rivals in Europe. This enhances Petrotec's cost-competitiveness
over other manufacturers of biodiesel, as 70-90 percent of biodiesel
production costs relate to raw materials.
DGAP 20.01.2009 
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Language:     English
Issuer:       PETROTEC AG
              Fürst-zu- Salm-Salm-Str. 18
              46325 Borken-Burlo
              Deutschland
Phone:        +49 (0)2862 9100 19
Fax:          +49 (0)2862 9100 99
E-mail:       info@petrotec.de
Internet:     www.petrotec.de
ISIN:         DE000PET1111
WKN:          PET111
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, München, Hamburg, Düsseldorf, Stuttgart
End of News                                     DGAP News-Service
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