WHITE PLAINS, N.Y., Sept. 17 /PRNewswire-FirstCall/ -- Bunge Limited today announced that it has signed an agreement to acquire Agroindustrial Santa Juliana, a sugarcane mill and ethanol production facility located in the state of Minas Gerais, Brazil, from the Tenorio Group. The acquisition represents Bunge's first production asset in the sugar and sugar- based ethanol industry, and complements the company's existing global sugar marketing and trading business.
"The acquisition of Santa Juliana is an important step in Bunge's strategy to become a global and fully integrated player in the sugar and sugar-based ethanol industry," stated Alberto Weisser, Chairman and CEO, Bunge Limited. "These markets are natural extensions of our core agribusiness operations, and by participating in them we intend to leverage our risk management and logistics expertise, increase our connection to farmers and expand the product portfolio Bunge offers its customers."
The mill, which commenced operation last year, will have the capacity to mill 1.6 million metric tons in the upcoming harvest season. Bunge has plans to expand the capacity to 4 million metric tons/year within the next several years.
"Integrating Santa Juliana and its employees into Bunge's agribusiness operations will also expand our expertise and insight into the management of the entire sugar value chain," continued Weisser.
The Tenorio Group located the mill in southwestern Minas Gerais, near the cities of Uberlandia and Araxa, because of the region's suitability for sugarcane production, as well as its proximity to large domestic sugar and ethanol markets, including Sao Paulo state. The mill benefits from efficient logistics and is connected by rail to the ports of Santos and Vitoria.
Sugar-based ethanol is widely considered to be one of the most energy efficient biofuels. The Santa Juliana mill produces its own energy by burning bagasse, a residual biomass produced during sugarcane milling.
About Bunge Limited
Bunge Limited (http://www.bunge.com/, NYSE: BG) is a leading global agribusiness and food company founded in 1818 and headquartered in White Plains, New York. Bunge's over 22,000 employees in over 30 countries enhance lives by improving the global agribusiness and food production chain. The company supplies fertilizer to farmers in South America, originates, transports and processes oilseeds, grains and other agricultural commodities worldwide, produces food products for commercial customers and consumers, and supplies raw materials and services to the biofuels industry.
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