Cargill Invest in Brazil
A joint venture would encompass Açucareira Corona’s Bonfim and Tamoio mills, the company’s lands, long-term leases and customer portfolio as well as approximately 7,000 employees.
“Cargill has analyzed the important, growing sugar and alcohol market in Brazil for some time, and has made the strategic decision to become more active in this sector,” explained Sergio Barroso, president of Cargill Brazil. “The good relationship that has existed between the three investing companies will make this strategic step possible,” said Sergio Barroso. “The economic strength of the joint-venture partners and specifically their commitment to Açucareira Corona S.A.’s continuity and the expansion plans previously discussed were conditions that were essential for the conclusion of the agreement,” said Sócrates Nasser, President of Açucareira Corona.
Açucareira Corona is made up of the Bonfim mill in Guariba and the Tamoio mill in Araraquara, both in the state of São Paulo, and is among the country’s largest sugar complexes. With this investment, Cargill would be entering the sugar and alcohol production sector in Brazil for the first time.
The Tamoio mill, which produces sugar, has an annual processing capacity of 1.5 million tons of sugar cane, or about 3.5 million 50-kilogram bags. The Bonfim mill, which produces sugar and alcohol, has an annual processing capacity of 4.5 million tons of sugar cane, or 7.5 million 50-kilogram bags of sugar and 190 million liters of alcohol.
The alcohol production is nearly all for the domestic market. Sugar is produced for both the domestic and export markets. Exports are handled by TEAG (the Guarujá Sugar Export Terminal), a joint venture entered into in 2001 between Cargill and Crystalsev.
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