Sao Paulo, Brazil, 9 Feb – The Noble Group, headquartered in Hong Kong, said Friday it had paid US$70 million to buy the Petribu Paulista sugar cane factory in Sao Paulo state, Brazil.
The factory has a capacity to process 2 million tons of cane per year and can produce both sugar and ethanol, according to Brazilian online new site, Valor Online.
The deal also included the acquisition of Meridiano, the company that owned the land on which the sugar cane used at the factory is planted.
Noble Group’s objective is to boost the factory’s capacity to 10 million tons of cane per year, and plans to invest US$200 million in that process over the next few years.
“This is a strategic investment for Noble Group in Brazil, which has the lowest costs in the world for producing sugar and ethanol and is the biggest producer and exporter of sugar in the world,” said the group’s head of international operations, Ricardo Leiman.
The price of the deal will be paid in cash and bank loans.
The Noble Group is focused on supplying products, such as sugar, cocoa, coffee, minerals, oils and gas and has its own shipping services.
The group, as well as Hong Kong, is also present in Pakistan, Paraguay, the Ivory Coast, Australia, Brazil, Canada, Panama, the United States, Singapore and Great Britain, amongst other countries.
The group’s sales in 2006 totaled 90 billion Hong Kong dollars. (macauhub)