SaraRasa Bioindo Pte. Ltd. has agreed with Cellmark Ab to supply its entire production of pellets for a four-and-a-half-year period starting August 2019 and ending in January 2024.
The agreement has provisions and flexibilities regarding market prices and production volumes and due to these parameters, the value of this contract is estimated to be between $31 million and $36 million.
This new off-take agreement replaces the previous 12-month agreement announced April 30, 2019 between the same parties with a value of $7 million.
SaraRasa Bioindo Pte. Ltd., a pellet producer using residual materials from wood working industries, owns and operates a wood pellet production line in Surabaya, Indonesia.
CellMark AB is a global supply chain service company.