UPDATE 1-Biopetrol says continues German biodiesel output

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HAMBURG Feb 17 (Reuters) - Swiss biodiesel producer Biopetrol B21.DE, which on Monday announced a major corporate restructuring, said on Tuesday its major German biodiesel plants would continue output, but both would go on short-time working.

A company spokeswoman in said short-time operations were being prepared at its 200,000 tonne capacity biodiesel plant in Rostock along with its previously announced short-time working for its 150,000 tonne plant in Schwarzheide.

The spokeswoman declined to comment on the status of its new 400,000 tonne annual capacity biodiesel plant in Rotterdam in the Netherlands.

On Monday, the company said it expected losses in 2008, it could not pay bond coupon interest and would start talks with a creditor bank and potential investors, aiming to restructure as an "alternative to an insolvency scenario" [ID:nEQezyjiqk].

"In Rostock, short-time working is prepared," the spokeswoman said. "Short time working will begin as soon as a current contract for storage filling is completed."

Biopetrol had said in November 2008 it had started to put a new 400,000 tonne annual capacity biodiesel plant in Rotterdam in the Netherlands into operation and planned to run it at around 50 percent capacity in 2009.

German biodiesel producers are currently suffering a serious loss of sales in petrol stations as the government is increasing taxes on green fuels.

In January, Germany's biodiesel industry association said it expected more plants to close in 2009 and that the sector was only working at about 60 percent of capacity. [ID:nLJ85621]

(Reporting by Michael Hogan; Editing by Keiron Henderson)