The Catalan company Lipsa, with a factory in Palos de la Frontera, closed 2025 with a turnover of 1.273 billion euros, an 18% increase from the previous year, and has initiated an expansion that will raise its production capacity to 1.5 million tonnes.
Lipsa, the Catalan giant of vegetable oils and fats, has once again focused on its Palos de la Frontera plant. The company, controlled by the Soler family, has announced an investment to expand its facilities in Huelva, which are already key in its biofuels strategy.
The Palos factory, dedicated to the pretreatment of oils and fats for biofuels, is experiencing a second youth. The company has started an expansion that will allow production capacity to increase from 1.1 million tonnes to 1.5 million tonnes. The works, according to company sources, will be completed by mid-2027.
The growth of Lipsa in Huelva is not coincidental. The Huelva plant has been responsible for the total production increase of the group, which reached 1.32 million tonnes in 2025, a 5.6% rise from the previous year. This entire increase is due to the greater activity in Palos de la Frontera.
Record turnover, but lower profits
Lipsa's accounts reflect a bittersweet 2025. Consolidated turnover grew by 18%, reaching 1.273 billion euros, nearing the 1.3 billion mark. However, net profit fell by 11%, to 88.2 million euros. The company allocated 70 million to dividend payments.
Lipsa explains that the drop in profit is due to increased competition and the normalisation of margins, which had been “exceptional” following the pandemic and the war in Ukraine. “Geopolitical tensions and commodity price volatility created an unsustainable scenario that is now being corrected,” company sources state.
Despite the profit decline, the company maintains its commitment to biofuels. This sector has been one of the drivers of revenue growth in 2025, alongside the increase in delivered volumes and rising raw material prices.
53% of sales outside Spain
Lipsa is not only looking at Huelva. The company markets its products in 45 countries and more than half of its sales (53%) are generated outside Spain. Europe accounts for 97% of international turnover, while Asia represents 2%. The company has two subsidiaries in the United States, both in Florida.
The Palos de la Frontera plant is strategic for supplying the growing biofuels market, where demand continues to rise. The expansion will allow Lipsa to better position itself in an increasingly competitive sector.
The company, founded in Santa Perpètua de Mogoda (Barcelona), employs a total of 300 people. Although the headquarters are in Catalonia, the focus on Huelva demonstrates that the province is a key industrial hub for the group.
The residents of Palos de la Frontera will see how activity at the plant intensifies in the coming months. The expansion works will generate temporary employment and, once completed, will consolidate the factory as one of the most important in southern Europe in its sector.
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