Spanish auto parts maker Cie Automotive's biofuels unit Bionor has formed a joint venture with Brazilian peer Enercom to build a biodiesel factory in Sao Paulo, Brazil.

The factory will produce 200,000 tonnes/year of biodiesel from soy crops and be ready sometime in 2008, the company said in a statement to just-auto on Monday.

Bionor will own 80% of the venture in which it will invest EUR40m.

Brazil apart, Bionor has a project to install three new biodiesel plants in Spain that will help it meet a target to supply 550,000 tonnes/year of biodiesel (in the European market) by late 2008, up from a previously forecast 445,000 tonnes/year.

Binor is currently building the first 300,000 tonnes/year biodiesel plant at Palos de la Frontera near the southern industrial city of Huelva. It has identified the towns of Puerto de Zierbena and Berantevilla (in the Basque Country), to set up the other two.

Bionor operates biodiesel factories in Alava, Spain and in Brescia, Italy.

Ivan Castano