GERMAN PELLETS AND WESTERVELT RENEWABLE ENERGY TO DEVELOP WOOD PELLET FACILITY (01/05/11)

FOR IMMEDIATE RELEASE

Contact: Robby Johnson, Marketing Manager
205.562.5445; rbjohnson@westervelt.com

GERMAN PELLETS AND WESTERVELT RENEWABLE ENERGY TO DEVELOP WOOD PELLET FACILITY

Tuscaloosa, Ala. - Advanced discussions are underway to form a joint venture between German Pellets USA and Westervelt Renewable Energy, LLC, which would fund and operate a commercial-scale wood fuel pellet production facility in West Alabama. The pellets will be produced from Southern Yellow Pine material for export and domestic markets.

Construction is expected to begin in 2011 with product deliveries scheduled for early 2012. The companies estimate the plant will initially produce 250,000 metric tons of wood pellets per year, expandable to 500,000 metric tons per year.

“The availability of renewable Southern Yellow Pine in West Alabama, where our landholdings are significant, makes this an attractive location for our initial production facility. With our history of success in manufacturing, we are eager to enter this business and intend to become a dominant player in this market sector,” said Alicia Cramer, Vice President of Business Development for The Westervelt Company.

“This opportunity affords us access to additional wood resources, expands our international supply chain, and supplements our existing sources of supply. The complementary skills and resources of the partners will make us a formidable competitor in international markets,” said Peter H. Leibold, Chief Executive Officer of German Pellets GmbH.          

Additional details will be released when the joint venture is finalized and the site selection process is complete.

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German Pellets USA is a subsidiary of German Pellets GmbH, headquartered in Wismar, Germany. German Pellets is Europe’s largest manufacturer of wood pellets, and operates eight manufacturing facilities with a combined production capacity in excess of one million metric tons annually. The company also produces horse and small animal bedding which is distributed throughout Europe, and provides residential and commercial pellet heating systems in Europe.

Westervelt Renewable Energy, LLC is an operating unit of The Westervelt Company, headquartered in Tuscaloosa, Alabama. A leader in sustainable forest management and conservation practices, The Westervelt Company is one of the country’s largest timberland owners with business operations in the timber, wood products, ecological services, and renewable energy sectors, and has interests in minerals, real estate, recreation, and agro-forestry intelligence.

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