Jan 14, 2013

• Adecoagro Vale do Ivinhema Sugar Mill will process 4.1 million tons of sugarcane per harvest and will have a cogeneration unit for electrical energy
• After completion, the project will create some 1,360 new jobs

The BNDES has granted financial support to Adecoagro Vale do Ivinhema in the amount of R$ 488.6 million. Funding will be used to implement a new sugar and ethanol mill in the municipality of Ivinhema, in the state of Mato Grosso do Sul.

The designed capacity of the mill is approximately 4.1 million tons of sugarcane per harvest. The project also entails implementing a cogeneration unit for electrical energy with an installed capacity of 120 MW and an associated transmission system, as well as support for a social project in the local community. The project will be implemented in phases, and the BNDES’ support will be limited to investments slated up to 2014.

Adecoagro Vale do Ivinhema is part of the Adecoagro Group, under international control. Founded in 2002, the Group is in operation in Brazil, Argentina and Uruguay and is involved in activities in the agriculture and cattle-raising sector, which includes growing cereals, oilseeds, coffee, cotton and sugar, producing dairy products and ethanol, as well as the cogeneration of power and cattle-raising.

The project now receiving support from the BNDES is the second that Adecoagro Group has implemented in the sugarcane industry in Brazil. The first project dates back to 2008, when Adecoagro started the operational activities of Angélica Agroenergia, in the state of Mato Grosso do Sul, also supported by the BNDES. This plant has a milling capacity of 4 million tons of sugarcane.

When the Ivinhema plant begins operation in 2014, the Group will reach a milling capacity of approximately 9.3 million tons of sugarcane, which, in current terms, will represent a share of the market close to 1.5% of the domestic milling capacity.

Currently, Adecoagro Ivinhema employs some 3,781 workers directly. After the project’s completion, another 1,360 direct jobs are expected to be created.