Tereos Moves Forward with Starch Investment by Entering the Brazilian Starch Market

Brazilian starch market. Tereos’ subsidiary, Tereos Internacional, a company listed on the São Paulo Stock Exchange, acquired a 68% ownership stake in Syral Halotek for R$45 million.

Halotek was founded in 1991 and is headquartered in Palmital, São Paulo state, where Tereos' Brazilian sugar and ethanol production sites are also located. Halotek currently produces a select range of starch products at a facility that employs 185 people and has current production capacity of 60,000 tonnes per year. Tereos’ investment in Syral Halotek will be earmarked for additional work on the construction of a cornstarch plant, a project initiated by Halotek. The goal is to add corn-based starch products to market to the food and paper industries in Brazil and other countries in South America.

 

The new Brazilian operation will benefit from Tereos' expertise in two primary ways: leveraging its knowledge of Brazilian agribusiness through Tereos’ subsidiary, Guarani, which is one of Brazil's leading sugar and ethanol producers and utilizing its commercial platform; and benefiting from Tereos Syral’s expertise in producing and selling starch products in Europe, for both food and non-food end markets. Industrial and organizational synergies with Guarani will also be achieved. Tereos Syral will continue to serve its European clients, particularly through the research and development of innovative food ingredients. "Tereos has chosen Brazil as the location for its first investment in starch production outside Europe. This acquisition demonstrates Tereos Internacional's strategy of developing industrial synergies within the Group by making the most of its agricultural and industrial expertise," explained Alexis Duval, CEO of Tereos

Internacional.