Investors from China have made a request to the Fumagalli group, in the Brazilian state of Paraná, to expand the project for the construction of silos for grain storage in the Brazilian state of Mato Grosso, said the president of the group.
Alberto Fumagalli also told daily newspaper Gazeta do Povo the Chinese investors had requested that instead of moving ahead with construction of 10 silos, each with a capacity of 60,000 tonnes, to expand the project to 30 silos.
The State of Mato Grosso, the Brazilian leader in the production of soy and maize, produced 58 million tonnes of grain in the 2017/2018 agricultural season, but only has static storage silos with a capacity of 33.8 million tonnes.
The Fumagalli group – a construction company that has operated in the agribusiness sector for 15 years – decided to create the NovaLog FIP investment fund, in order to attract funding both in Brazil and abroad to build the grain silos in various locations of the state of Mato Grosso.
The president of the group said there were four investment companies in China interested in the business, as well as investors in the United States, South Africa, the Middle East and Brazil.
Nova Log, a company created by the group, will be responsible for managing the silos, with the agreement of investors, who are the shareholders, Fumagalli said.
The project is in the fundraising phase and construction work is scheduled to begin in the first quarter of 2018 as the locations for the first two silos have already been purchased.
“The locations were chosen based on the existing storage deficit and logistical considerations,” said Fumagalli.
Brazilian newspaper Valor Económic reported last week that the Chinese groups HNA Modern Logistic and Yangtze River Development had signed an investment agreement with the NovaLog FIP fund. (macauhub)