Spanish parts maker CIE Automotive and chemicals manufacturer La Seda de Barcelona (LSB) will create a joint venture to expand in Spain’s fast-growing biodiesel market, the companies announced.

The venture will be called Bioseda and build biodiesel factories next to LSB’s chemical plants across Spain.

Bioseda’s first project is the construction of a biodiesel plant next to LSB’s IQA chemicals mill in Tarragona, northern Spain.

The joint venture will be 60% owned by LSB and 40% by Bionor, Cie Automotive’s biofuels arm.

Cie Automotive is growing aggressively in Europe’s biofuels market with plans to install over 500,000 tonnes of capacity by late 2008.

Ivan Castano