👉 How Biosev – a Brazilian company sold one of its sugar factories?
The company Biosev SA (the Brazilian division for sugar and ethanol Louis Dreyfus Co) sold the Estivas sugar factory located in the state of Rio Grande do Norte in the northeastern region of Brazil for 203.6 million reais (50.38 million yuan) USD) to an investment fund, whose name was not disclosed, reports “Reter”.
The plant is able to process 1.8 million tons of cane per year.
Chief Financial Officer Biosev Gustavo Lopez Theodosio told RETER that the company plans to use proceeds from the sale to pay off the debt.
Biosev remains with nine plants in Brazil. The company’s losses amounted to 506 million reais in the quarter ended June, compared to 577 million reais a year earlier. At the end of June, the company’s debt increased to 6.28 billion reais.
The CFO said that as part of the strategy to improve profitability, the company increased the amount of ethanol stocks, wishing to sell the product between the yields from December to March.