Customer Conversations: Why Verborg Group Chose Us

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Posted: Nov 26, 2024 • 4 minute read • SMART • 1 Likes

In a north-eastern corner of the Netherlands, near the city of Delfzijl, the old Nedalco bio-ethanol plant stood out as a tangle of steel pipes, tanks and towers on a windswept stretch of industrialised coastline. The factory was commissioned in 1967, but had fallen into disrepair after ceasing operations in 2005. Local residents considered it a stain on the landscape, calling it the ‘the blotch of Delfzijl’.

But where most people saw an eyesore, Goedhart Borgesius, Director of Verborg Group, saw an opportunity.

From Vision to Reality

Today, the revamped refinery, which opened in early 2024, can process 200,000 tonnes of tropical oils a year. It is also among Europe’s most energy-efficient bio-refineries, emitting 69% less carbon dioxide than a traditional refinery. The site is flanked by wind turbines and hosts solar panels with an annual capacity of 80,000 kWh, powering the Verborg Group’s operations with 100% renewable energy, in line with the company’s sustainability commitments.

The plant sits alongside 60,000m³ of tank storage space provided by storage and logistics firm Contitank, as well as its own sea jetty, which allows Verborg Group to cater to diverse demands of customers looking for sustainably-produced plant-based oils and fats.

verborg group img 1

Efficiency, Sustainability and Quality

Borgesius and his business partners, brother John Borgesius and Hedde Verhagen, have more than 30 years of experience in the vegetable oil industry, from production and product innovation to storage and distribution.

Efficiency and output were top priorities when getting the refinery up and running, a feat which the team achieved in a record 13 months. But this didn’t diminish Verborg Group’s conviction to incorporate better and more sustainable practices and approaches into the business.

“We needed a reliable supply of high-quality oils with all the sustainability credentials our customers demand. GAR’s commitment to sustainably produced palm oil aligned perfectly with both our needs and vision.”

Goedhart Borgesius, Director, Verborg Group

“We knew we needed to balance productivity with sustainability,” Borgesius reflects. “The question was how to achieve both without compromising on quality.”

The turning point came in January 2024 when Verborg Group announced a strategic partnership with GAR (SMART’s holding company). This collaboration was built on more than supply and demand; it represented a shared commitment to sustainable practices in the face of evolving market regulations. The project involved a multi-year contract where GAR would supply over a million tons of tropical oils to Verborg’s newly-established refinery.

Embracing Sustainable Practices

For Borgesius, the GAR-Verborg partnership was just the beginning of a larger transformation.

This partnership will create new opportunities for the Verborg Group, supporting their compliance with the upcoming European Union Deforestation Regulation (EUDR), which will prevent products linked to deforestation from entering the EU. GAR’s strict adherence to no-deforestation policies across its supply chain, backed up by robust traceability measures, has brought Verborg Group closer to its goal of truly sustainable and traceable palm oil production.

verborg group img 2 — *The Verborg Group visit a GAR plantation in Riau, Indonesia, to see our Traceability to the Plantation in action.*

“GAR’s emphasis on traceability and sustainability, backed by its experienced people and robust supply chain data, was exactly what we were looking for in a strategic partner. The company’s ability to provide high quality, responsibly sourced, and traceable vegetable oils enable us to meet the evolving demands of our European customers.”

“We’ve achieved a lot, but there’s always room to do better,” he states. “I look forward to more innovations in sustainable practices and more collaborations that can drive our industry forward.”

Looking ahead

Borgesius envisions a palm oil industry where sustainability is not just an obligation – it’s an opportunity. He believes that partnerships like the one between GAR and Verborg Group can help to guide industry-wide change.

“We pride ourselves on being more than a commodity supplier… Regulations and customer demands change, but our commitment to sustainably-produced palm oil has remained at the heart of our business.”

Maarten van der Hoeven, Head of Europe and Latin America, GAR

Maarten van der Hoeven, GAR’s Head of Europe and Latin America, agrees. “We pride ourselves on being more than a commodity supplier. We aim to be the strategic partner to help our customers meet their business needs, whether for quality, custom products or supply chain solutions.”

By combining strengths with partners like Verborg Group, GAR is working to create a more sustainable and efficient palm oil industry that is prepared to meet current and future challenges for the industry. This partnership shows how, by leveraging combined expertise and resources with customers, GAR can drive innovation and set new standards for responsible practices in the sector.

“Regulations and customer demands change, but our commitment to sustainably-produced palm oil has remained at the heart of our business,” said van der Hoeven. “Together, Verborg Group and GAR are committed to establishing a sustainable future for the vegetable oil industry.”

GAR is committed to helping customers and partners like Verborg Group meet EUDR standards with traceability and no-deforestation practices. Read more about our efforts here.