Archer Daniels Midland Company has announced that it has reached an agreement to sell its sugarcane ethanol operations in Limeira do Oeste, in the Brazilian state of Minas Gerais, to JFLim Participações S.A.
“We regularly review our asset portfolio to determine how best to maximise shareholder returns, and in this case, we have determined that our sugarcane ethanol operations in Brazil are unlikely to meet our long term returns objectives,” said Chris Cuddy, President of ADM’s corn processing business unit. “As our sole sugarcane ethanol operation in Brazil, this asset is too small for ADM to compete effectively in a challenging ethanol environment.”
The transaction includes a sugarcane plantation and an ethanol distillery, which is capable of crushing up to 1.5 million t of sugarcane and producing 37 000 gal./y of ethanol. About 650 employees work in the plantation and plant. The sale, which is subject to regulatory review, is expected to close in the second quarter of this year (2Q16).
“ADM is continuing to invest in Brazil, which is a major centre for our global operations,” Cuddy continued, “Brazil is one of the world’s most important producers of agricultural products, and will be critical to feeding a growing global population in the coming years. We look forward to continuing to partner with Brazilian farmers to feed the world together.”
ADM is one of the largest agribusiness companies in Brazil. The company operates the largest biodiesel plant in Brazil, and more than 40 elevators across the country. ADM is a joint owner of an export terminal in Barcarena, and has a concession to operate a terminal at the Port of Santos.
Adapted from press release by Francesca Brindle
Read the article online at: https://www.hydrocarbonengineering.com/clean-fuels/01042016/adm-sells-sugar-ethanol-operations-to-jflim-participa%C3%A7%C3%B5es-2914/