The Catalan manufacturer of oils and fats, with a factory in Palos de la Frontera (Huelva), increased its revenue by 18% in 2025, reaching 1.273 billion. The expansion of the Huelva plant, key to growth, will be ready by 2027.
Lipsa, the manufacturer of vegetable oils and fats with one of its two plants in Palos de la Frontera, closed 2025 with a consolidated revenue of 1.273 billion euros, an 18% increase from the previous year. The company, 95% controlled by the Soler family and partly owned by the American giant Cargill, is thus approaching the 1.353 billion of 2022, its best historical record.
The growth, according to the company, is largely due to the biodiesel business, which has been materialising opportunities over the last two years. The sales mix, the increase in delivered volumes, and the rise in raw material prices also play a role. Total production between the two plants — Santa Perpètua de Mogoda (Barcelona) and Palos de la Frontera — reached 1.32 million tonnes, a 5.6% increase from 2024.
The Huelva plant, a growth engine
The increase in production is entirely due to the greater activity at the Huelva factory, where the company is carrying out an expansion. The goal is to raise production capacity from 1.1 to 1.5 million tonnes. The investment, which is already underway, is expected to be completed by mid-2027, according to sources from Lipsa.
The Palos de la Frontera plant specialises in the pretreatment of oils and fats intended for biodiesel manufacturers. This sector, along with human and animal food, is strategic for the company, which refines palm, coconut, or soybean oils.
The expansion will not only strengthen production capacity but also consolidate Huelva as a key industrial hub in southern Europe for biodiesel production. The Huelva factory is one of the largest of its kind in Spain and employs more than 200 workers, according to the company's own data.
Declining profits in a more competitive environment
Despite the increase in sales, Lipsa's net profit fell by 11% in 2025, down to 88.2 million euros. The company attributes this decline to the more competitive environment and the rising costs of raw materials, which have pressured margins.
Nonetheless, the company maintains a solid financial position and continues to invest in its facilities. The expansion of Palos de la Frontera is a testament to its commitment to long-term growth, especially in the biodiesel segment, where demand continues to rise due to decarbonisation policies.
For the residents of Palos de la Frontera and its surroundings, Lipsa's expansion represents an injection of economic activity and job creation during the construction phase, in addition to consolidating existing jobs. The company collaborates with the local community and participates in sustainability initiatives in the area.
The forecast is that, once the expansion is completed, the Huelva plant will be able to handle a greater production volume and meet the growing European demand for biodiesel. Lipsa has already begun negotiating new contracts with clients in the automotive and aviation sectors, according to industry sources.
Meanwhile, the company continues to drive its commercial activity in other markets, such as food, where it supplies major brands of pastries, snacks, and ice creams. The diversification of its business allows it to offset the volatility of raw material prices and maintain a balanced portfolio.
"The expansion of the Huelva plant is strategic for our growth in biodiesel," says Francisco Soler, CEO of Lipsa. "We are seeing growing demand and want to be prepared to meet it."
The announcement of the expansion has been well received by the Palos de la Frontera Town Hall, which sees Lipsa as an economic engine for the region. Mayor Carmelo Romero has highlighted the company's "commitment to innovation and sustainability."
The company expects that the expansion works will generate around 150 temporary jobs over the next two years, and once completed, the permanent workforce could increase by 10%. Lipsa has also announced that it will invest in environmental improvements at the plant, such as emission reduction systems and water treatment.
The future of the Huelva plant looks promising. With the expansion, Lipsa aims to become one of the largest biodiesel production centres in southern Europe, competing with plants in France and Italy. The strategic location of Palos de la Frontera, near the port of Huelva, facilitates exports to markets such as North Africa and Latin America.
For readers in Huelva, the news is a sign of the industrial strength of the province, which continues to attract investments from top-tier companies. Lipsa joins other companies that have bet on Huelva, such as Atlantic Copper or CEPSA, reinforcing the local productive fabric.
You may also like
