Brazil's Sao Martinho to supply sugar cane for Raizen's plant in Sao Paulo
Sep 11, 2013 - Brazilian sugar and ethanol maker Sao Martinho (SAO:SMTO3) will supply some 200,000 tonnes of sugar cane from its unit Sao Martinho, in Pradapolis, southeastern Sao Paulo, to the sugar and ethanol processing mill Bomfin of sector firm Raizen in Guariba, also in Sao Paulo.
The supplies will be made under a contract between the two companies for the sale and purchase of ethanol, approved by Sao Martinho's board yesterday.
Sao Martinho explained that the supply of the 200,000 tonnes is a result of the higher output of its sugar cane plantations in Pradopolis. The company's unit there is seen to process 9 million tonnes of sugar cane in the ongoing 2013/2014 crop year. In the next crop period, Pradopolis' crushing capacity will grow to 10 million tonnes.
Raizen is a joint venture between Cosan and Anglo-Dutch oil major Shell (AMS:RDSA).