Cargill will invest US$ 205.9 million in new factory of corn ingredients
Valor Econômico
Cargill announced yesterday that will invest R$ 350 million (US$ 205.9 million) to build a new factory in Brazil to produce corn-based ingredients such as starches and sweeteners. According to the company, the intention with the new factory, is monitoring the growth of the demand for these ingredients in the country. The unit, whose construction site is still undefined, will represent a 30% increase in the capacity of corn milling of the company in South America. It should come into operation in 2013. Cargill is evaluating three States - whose names were not released - to install the unit. The decision on the location of the new factory should be out yet this quarter, the company said. The American multinational already has a production unit of corn-based industrial and food ingredients in Uberlandia (MG), where it concluded in March 2010, an increase of 70% capacity. The investment in the expansion was of R$ 197 million (US$ 115.9 million) and included the construction of a cogeneration system for producing electricity from biomass.
Recently, Corn Products, which also operates in the production of corn-based ingredients, announced investments of R$ 170 million (US$ 100 million) to increase its processing capacity of corn, expand product lines and develop new ingredients in Brazil.
Gonzalo Petschen, from the starch & sweetener business unit of Cargill South America, said in an announcement that the partnership with clients in Brazil and the heating of the domestic market were decisive for the investment in the new corn processing factory. The corn-based ingredients are used in food industry and also in paper and animal nutrition. According to Cargill, the new factory will have, besides the traditional ingredients derived from corn, a line dedicated to new ingredients produced from the raw material.