BRAZIL: Biosev suspends production at Maracaju mill
Published: 11/09/2017, 3:57:20 PM
Biosev, Brazilian sugarcane processor owned by Louis Dreyfus, decided to suspend activities at its Maracaju mill, located in Mato Grosso do Sul, to reduce production costs, reports Sugaronline.
"This decision is part of the company's program to reduce its unit production cost, in order to bring greater resilience to its cash generation," the company announced in a filling at Brazil's securities regulator CVM Thursday.
The suspension was approved by Biosev's board of directors on Wednesday, effective from this Thursday, and is restricted to operations at the mill. Sugarcane production in Maracaju property will continue, and the raw material will be directed to be processed by other mills located in Mato Grosso do Sul state, including Rio Brilhante and Passatempo mills, which will increase their use of production capacity.
Rio Brilhante and Passatempo mills have a greater capacity to produce sugar and ethanol, and can also generate power to be sold to the Brazil's electric grid, while Maracaju mill isn't able to do so.
Biosev owns 11 sugarcane mills located in São Paulo, Mato Grosso do Sul, Minas Gerais, Paraíba and Rio Grande do Norte states. Maracaju mill has capacity to process up to 1.8 million tonnes of sugarcane per season, 21,619 tonnes of sugar and 46,000 litres of ethanol.
Rio Brilhante mill can grind up to 5 million tonnes of sugarcane per season, and produce 200,000 tonnes of sugar and 80,000 litres of ethanol. Passatempo has total crushing capacity of 3.3 million tonnes of sugarcane. It can produce up to 34,500 tonnes of sugar and 66,200 litres of ethanol.