HPB and SIMISA get together to invest US$ 32.8 Million in the bioenergy sector
DCI
Two traditional suppliers of the sugar and alcohol sector got together to form a new company: HPB-SIMISA. The joint investment in the new business, which begins with the construction of a new plant in Sertãozinho for the production of thermoelectric power plants and boilers, will be R$ 60 million (US$ 32.8 million) until 2014. In this period, they expect to get to nearly R$ 500 million (US$ 273.2 million) in sales and an installed capacity to produce 15 boilers a year.
According to Renato Malieno Nogueira, President of the HPB-SIMISA, the initial capacity of the company will be to produce six boilers in 2010, with 170 employees. "We have two orders on hand for the supply of generators for ETH, from the Odebrecht group", the boilers, in the value of R$ 90 million (US$ 49.2 million) will be intended for the expansion of two plants that are already in operation in Goiás and Mato Grosso do Sul. By 2014, the productive capacity of the HPB-SIMISA will leap to 15 boilers a year and the company will have nearly 1.2 thousand professionals.
The expansion, according to Nogeuira, is attributed to a expectation of growth in the use of biomass-based fuels not only in Brazil but in other markets. "We will focus on other markets, such as paper and pulp, steel and petrochemicals, but the sugar and alcohol sector should be responsible for 90% to 95% of our businesses", he estimates. In that setting, he highlights the possible fall of the ethanol import barrier in the United States and the adoption of quotas for the addition of biofuel to diesel in Europe and in Japan. "All that added to the vegetative growth of sugar", emphasizes Nogueira. SIMISA already operates in more than 20 countries and with the synergy with the HPB it should seek new markets.
The new company formed by the HPB and SIMISA groups, each with 50% of interest, will occupy an area of 130 thousand square meters. The construction of the industrial park begins in May and its start-up in the new facilities is scheduled for March 2011. From the financial volume invested, 20% comes from own resources and the remainder is financed by the National Development Bank (BNDES) and other private banks. With 43% of the domestic market, Simisa had earnings of R$ 335 million (US$ 183.1 million) in 2009. Last year the HPB registered nearly R$ 310 million (US$ 169.4 million) in business generation.