INTERVIEW-Demand for U.S. ethanol plants "dead" until 2009
LONDON, March 26 (Reuters) - The global banking crisis and record feedstock prices mean demand for new U.S. ethanol refineries will be "dead" for at least a year, the outgoing head of refinery engineer Bateman Litwin BNLN.L told Reuters.
"We had a roadshow three weeks ago with the CEO of Delta-T; we met all the top 15 banks and institutions financing the ethanol business and the view of everybody is 2008 is probably dead, mainly because of the general market but also because of the ethanol market," outgoing Chief Executive Shuki Raz told Reuters on Wednesday.
Bateman bought U.S. ethanol refinery plant designer Delta-T last year in a cash and share deal.
"Everyone believes in the second quarter of 2009 we will see the ethanol market coming back to life and we want to be ready for it," said Raz, whose departure was announced on Wednesday.
Raz believes it will be April, May or June of 2009 before the market recovers.
He will remain as a consultant to Bateman. (Reporting by Chris Wills, Editing by Mark Potter) (chris.wills@reuters.com; 0044 (0)20 7542 5331; Reuters Messaging: chris.wills.reuters.com@reuters.net))
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