GreenChem secures agreement to supply AdBlue to Israel and outlines expansion plans for Europe

GreenChem, the AdBlue supplier, has signed an agreement to supply AdBlue equipment and product to the transport sector in Israel under a franchise contract signed on 29 January. A new company will be established in Israel which will focus on the developing AdBlue market. The new company, yet to be named, will be a joint venture between Gadot Chemical Tankers and Terminals Ltd (GCTT), a chemical distributor and supplier of bulk commodity chemicals, and Taavura Holdings Ltd, a large road haulage and logistics company. Israel adopted Euro IV legislation on 1 October 2006, at the same time at Europe, and there have been widespread concerns in the transport industry about the lack of an AdBlue infrastructure.

In Europe, GreenChem has reported successful AdBlue sales growth. GreenChem's Managing Director, Dr Teun de Bruijn, told Vent that sales volumes were developing according to budget, and that a strong dealer network had been established in most countries including Germany, France, Spain and the UK, and that network development in Italy was a current priority.

Dr de Bruijn said that GreenChem had brought forward expansion plans for AdBlue production, and was now expecting to open 13 and 15 production sites in Europe by late 2007, compared to earlier plans of 6 or 7. Some will be based at existing sites owned by its AdBlue production partner Dynea, and others would be at suitable third party locations. GreenChem and Dynea have an exclusivity agreement for AdBlue in Europe. To assist in its supply planning, GreenChem has recruited a supply and logistics expert, Paul Burgers, who will be responsible for ensuring a cost-effective supply chain for AdBlue.

There have also been reports that GreenChem has secured an agreement to supply AdBlue to DaimlerChrysler in Europe. The agreement apparently covers packed AdBlue such as drums and IBCs, including AdBlue pumps. According to fleet managers contacted by Vent, DaimlerChrylser dealers sometimes offer a free supply of AdBlue for buyers of Mercedes-Benz trucks, especially for smaller rigid models used in local distribution.