Rex invests $9m in NuGen Energy
Dedicated to investing in alternative energy projects, Ohio, US-based Rex American Resources Corp. has acquired a 48% stake in ethanol producer NuGen Energy.
After parting with $9.2 million (€15 million) for the stake on 14 July this year, Rex has expressed its willingness to invest an additional $6.5 million in the South Dakota-based company depending on future sales.
NuGen Energy is currently running a large-scale 100mgy ethanol plant in Marion, South Dakota.
Stuart Rose, the chief executive at Rex, said: ‘The NuGen investment furthers Rex’s strategy to prudently deploy its strong balance sheet for new investments in ethanol production facilities or other attractively valued renewable resources or industrial project opportunities.’
Up until June 2010 Rex was trading under the name Rex Stores Corp. With the support from its shareholders the company changed this in order to clearly communicate its focus on investment in alternative energy projects.
After parting with $9.2 million (€15 million) for the stake on 14 July this year, Rex has expressed its willingness to invest an additional $6.5 million in the South Dakota-based company depending on future sales.
NuGen Energy is currently running a large-scale 100mgy ethanol plant in Marion, South Dakota.
Stuart Rose, the chief executive at Rex, said: ‘The NuGen investment furthers Rex’s strategy to prudently deploy its strong balance sheet for new investments in ethanol production facilities or other attractively valued renewable resources or industrial project opportunities.’
Up until June 2010 Rex was trading under the name Rex Stores Corp. With the support from its shareholders the company changed this in order to clearly communicate its focus on investment in alternative energy projects.
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