Great construction companies focus their business on the sugar and alcohol sector
Valor Econômico - 09/02/2008
The potential of the biofuel market is now attracting engineering's big names. In order to take advantage of the strong expansion of the sugar and alcohol sector - with nearly 100 new plants being built and expected to start working until 2012 - heavy names of construction such as Camargo Corrêa, Método Engenharia, Odebrecht and Queiroz Galvão dig for opportunities where they can. To grab the opportunity left by traditional companies of capital goods focused on the sugar and alcohol sector, like Dedini, from Piracicaba (SP); Sermatec, from Sertãozinho (SP); and Renk Zanini, from Cravinhos (SP), which are barely able to meet the demand for these new units, with firm order for the construction of plants for the next two years, Método Engenharia created a specific division to manage the construction of ethanol units. The objective is to sell and manage the whole project ("key in hand"), from the structuring of the business and the feasibility project until the civil construction and purchase of equipment. Last week, Método signed its first contract with the BER (Brasil Energia Renovável) for the management of the works of the expansion of the Guaricanga plant, in Presidente Alves (SP). The project will have two stages and may exceed R$ 60 million (US$ 36.8 million). The company is also specializing in building plants for the generation of energy from bagasse. A reference in the international market, Dedini also already exports projects of "key in hand" plants, but, in order to order a project of this size, enterpreneurs have to wait in the queue. Already traditional in the sugar and alcohol market, Procknor Engenharia also offers equipment for the sector. Like Método, it also manages new projects in this area. Camargo Corrêa, Odebrecht and Queiroz Galvão have not tried to enter in the equipment for sugar and alcohol division yet, but they found a way to profit in this sector. Carmargo Corrêa Investimentos e Infra-Estrutura branch became a partner of Petrobrás and Mitsui in the construction of alcoholducts, which should connect the main alcohol producing regions to the ports of the country, informed the company. Odebrecht, which has worked as an alcohol producer since 2007 through its energy company ETH, will also participate of these ducts' building works. The division of agro energy of the group has two plants in operation and three more being built, with startup expected for 2009, in addition to six other "Greenfield" projects (built from scratch). Also with an eye on the ethanol market, but as a producer, construction company Queiroz Galvão indicated a partnership with the Japanese trading Itochu in biofuel projects in Bahia and Pernambuco last year. In addition to the construction companies, the sector has also attracted multinational ones, like American General Electric (GE). It has already a division in Campinas for the production of turbines. The company is focusing this division on working in the production of sugar and alcohol equipment and, also, on the co-generation of energy. The company's plant in Campinas (SP) will be strongly dedicated to this sector.