Dallas, Texas 04/02/2014 (FINANCIALSTRENDS) – VLO is considered to be the largest refining company in the world. The management of the company has decided to go ahead and try their hands with exploration of new plants. The company feels that rather than managing the less profitable and lucrative plant it is better to explore the new ones.
This is the reason why recently there have been a lot of great deals being signed by Valero Energy Corporation (NYSE:VLO) and it is expected to boost the markets.
The acquiring of Indiana Ethanol Plant
Just after taking over Chevron British Refinery and acquiring the assets of about 731$ millions, the refinery giant Valero Energy Corporation (NYSE:VLO) has confirmed that it is going to buy Ethanol Plant in Indiana with the capacity of 110 million gallon per year. It is predicted that with this deal in place the ethanol production capacity will increase up to 1.2 billion gallons per year.
The non-performing units to get back in shape soon
The crude oil unit and sole fluid catalytic which is also known as Memphis Fluid Refinery was hit with sudden air blow and was shut down. The management has confirmed that the work will resume in 10 weeks. It is definitely not going to affect Valero’s business and the latest acquiring of the plants will cover up the losses if any.
The re-opening of Ship Channel
Due to the tragic oil spill on 22 March 2014, the biggest export port had to be closed for cleaning. It was opened again on 26th of this month and everything is falling right into place slowly. Valero Energy Corporation (NYSE:VLO) possesses the huge network of refineries on the 84km lane. The news of opening of the lanes again and the freedom of resuming the business will surely take the business graph upwards.
Over all the company’s stability in the market and the present trend of its acquiring and exploring of the new plants shows the strength and worth of this company. These deals will definitely cause the increase in the sales and profit margins of the company.