ETH and Brenco join operations and plan on investing US$ 1.9 billion by 2012
O Estado de S. Paulo
In the notice that confirmed the absorption of Brenco by ETH, yesterday, the President of the new company, José Carlos Grubisich, said the goal is to be the world leader in the production of ethanol and bioenergy by 2012. The company is born with a projection of assets of R$ 7.3 billion (US$ 4.1 billion) in 2012, when all the plants will be in operation. The shareholders of Brenco will have 35% of the business and three seats in the Board. ETH, controlled by the Odebrecht Group, will have the majority of the capital, with 65% of the shares and seven members in the Board. The plan is to invest R$ 3.5 billion (US$ 1.9 billion) until 2012. Together, they have already invested R$ 3.8 billion (US$ 2.1 billion).
In plans for 2012, ETH intends to produce 3 billion liters of ethanol, 2.7 thousand GWh/year of energy and from 550 thousand to 600 thousand tons of sugar. The goal is to crush 40 million tons and sell R$ 4 billion (US$ 2.2 billion) two years from now. If the sector leader, Cosan, makes no acquisitions or aggressive investments, ETH may occupy the world leadership in sugarcane ethanol, as it plans.
ETH, which has Sojitz as a shareholder, goes into the business with five plants in operation. Brenco, whose main shareholders are the BNDESpar, Tarpon Investment and Ashmore, adds two plants that are about to begin crushing and another two that are in phase of project to the new company. The focus is ethanol and energy, but ETH wants to keep a base for the production of sugar in order to balance the business.
It is also in the plants of ETH to speed Brenco's project for the construction of an alcohol duct that will connect the production in Alto Taquari, in the Midwest, to the port of Santos. It will depend on partners who want to join the project. Petrobras has ducts connecting Paulínia, in the interior of São Paulo, to Santos, and it would be an interesting partnership. The works of the project that is in phase of environmental licensing are expected to last up to three years, in a total of 1,120 kilometers.
In the business model of the company, 40% of the investments will be made with equity capital and 60%, with loans. The possibility of an initial public offering is already being discussed. "It is not the initial goal, but as the leadership requires a high competitiveness model, the IPO should be held until 2012", said Grubisich.