Brazil Canabrava buys Santa Cruz sugar, ethanol mill for USD 32.1m - report
Sep 11, 2012 - Brazilian sugar and ethanol maker Canabrava yesterday confirmed the purchase of local Santa Cruz sugar and ethanol mill for BRL 65 million (USD 32.1m/EUR 25.1m), according to a report of Brazil's daily Valor Economico.
The mill, property of local sector firm Grupo J. Pessoa, was placed under receivership in 2010 and has not been operational since then.
Canabrava plans to invest further BRL 100 million in order to relaunch the facility in 2014, with crushing capacity of 1.5 million tonnes of sugar cane per crop, Canabrava's president Ludovico Giannattasio told Valor.
Santa Cruz will return to operations focused only on sugar production for supply to southeastern Rio de Janeiro state.
Last month Canabrava unveiled it would invest BRL 300 million in the construction of its second ethanol mill.
The venture will have capacity to crush 1.5 million tonnes of sugar cane and produce 120 million litres (31.7m gallons) of ethanol per crop. It will also comprise an electricity co-generation plant with installed capacity of 44 MW.
The undertaking will be built in the Campos dos Goytacazes municipality of Rio de Janeiro, where Canabrava's first mill and the Santa Cruz unit are located.
The company will aim to reach in 2015 a total crushing capacity of 5 million tones of cane sugar per crop at the said three facilities.