Excellence Refined - 30 Years - Valero

Valero closed the acquisition of five of the plants on April
1, 2009, a sixth plant on April 9, 2009, and a seventh plant
on May 6, 2009. In so doing, Valero became one of the
nation’s largest ethanol manufacturers, producing 780
million gallons annually under a new subsidiary, Valero
Renewable Fuels. The acquisition was a good business fit,
with rising federal mandates to blend ethanol – a cornbased
product – with gasoline. Valero quickly mobilized
teams from across several departments and disciplines
to the plants to have operations ready on day one – less
than two weeks after the auction. Valero’s flexibility again
proved profitable, and by the third quarter of 2009, the
plants were running at capacity.
But the investment was only the beginning. Just seven
months later, Valero would make the ethanol leap again
– this time investing $200 million in two former VeraSun
plants in Linden, Ind. and Bloomingburg, Ohio, as well
$72 million for a third plant owned by Renew Energy LLC
in Jefferson, Wis. When finalized, the deals – purchased
at 41 percent of replacement cost – will bring Valero’s
annual production capacity to 1.1 billion gallons per year.
From the McKee Wind Farm to processes that create
fuel from algae and animal fat, Valero Renewables
has taken the company to its farthest point yet in the
alternative fuels industry – evidence that the company is
constantly evaluating opportunities that bring value to
the shareholder and to Valero itself.
Our Company
With growth as its backdrop, Valero Energy Corporation
gained prominence and notoriety in an often unglamorous
industry. Time and again, our company was painted as
a different sort of venture – one that retained much of
its small-company beliefs despite the size of its work
force, refining capacity or business direction. Valero as
a company continually has chosen to go its own way –
with dedicated employees and a solid work ethic. It is
a core belief system that has garnered recognition from
the industry as well as policymakers and investors.
They might question business decisions from time to
time, but they do not question Valero’s strength as an
ethical, experienced and socially responsible company.
Our products improve people’s lives, are economical
and reliable – a statement few can dispute in an era of
unprecedented need. “Valero works hard for all of its
stakeholders with sound business principles, planning
and products that improve consumers’ lives,” Klesse told
stockholders in 2009. “The jobs we provide, the taxes we
pay, and the impact we have on the neighborhoods and
communities around our facilities show the truly positive
role we have in our society. That is our commitment.”
*In December 2006, Valero completed the sale of its ownership interest in
Valero GP Holdings, LLC, successfully spinning off its logistics operations
(Valero L.P.) and its general partner, Valero GP Holdings. The new company
was renamed NuStar Energy.
25 Valero Lines 3oth anniversary edition