Santa Luzia And Eldorado Plants In Mato Grosso Do Sul To Receive R$ 500 Million Investment To Increase Production Capacity

The Arab Fund FIP Agroenergia Took Control of Two Sugar and Ethanol Mills in Mato Grosso do Sul, Santa Luzia and Eldorado. The Investment of R$ 500 Million Will Be Essential to Highlight the Production of the Factories.

The investment fund FIP Agroenergia, based in Abu Dhabi, United Arab Emirates, is preparing to inject R$ 500 million to revitalize and increase production at two sugar and ethanol mills in Mato Grosso do Sul. Focusing on the Santa Luzia mill, the fund aims to boost production by up to 40%. Additionally, the Eldorado mill, also part of the Arab investment, aims to restore its performance, targeting a production of 4.1 million tons per year. FIP Agroenergia plans to follow the business plan, striving for sustainability and value for all stakeholders involved.

Investment of R$ 500 Million from FIP Agroenergia Will Highlight Mills in MS in the Market

FIP Agroenergia, an investment fund based in Abu Dhabi, the capital of the United Arab Emirates, is investing R$ 500 million to rescue and boost production at two important sugar and ethanol mills in Mato Grosso do Sul.

With the goal of boosting the industry, the fund seeks to reverse the judicial recovery situation in which the mills have been for years.

Recomendado para você

Oil and Gas

Major Oil, Gas, and Energy Event Will Take Place in Brazil: Macaé Energy Will Gather Petrobras, Equinor, Prio, Among Other Suppliers and Energy Executives for Business, Networking, and Employment Opportunities

The Technical Agenda and the Fair in the City of Macaé Should Boost Discussions on Investments, Energy Transition, and Development of the Oil, Gas, and Energy Chain in the National...

Paulo Nogueira

1

One of the projects of FIP Agroenergia that will receive part of the investment is the Santa Luzia mill, established since 2007 in Nova Alvorada do Sul, along the BR-267.

Despite the challenges faced, including judicial recovery since 2019, the mill surprised by recording a net profit of R$ 128.9 million during the last harvest (March 2022 to March 2023).

This achievement represents an important milestone since the Arabs entered the ethanol and sugar sector in the state of Mato Grosso do Sul.

Although the results indicate recovery, the balance still shows a decrease of 41% (R$ 90 million) compared to the previous harvest, when the net profit reached R$ 219 million.

To overcome these challenges, the Arab fund took a 31.5% stake in the company.

Now, FIP Agroenergia’s main focus is on agricultural production, aiming to balance finances and increase production by approximately 40%.

Thus, the company intends to regain its productivity prominence at the mill over the coming years. 

Eldorado Will Also Benefit from Billion-Dollar Investment from the Arab Fund

Besides the Santa Luzia mill, another factory benefiting from the Arab investment is the Eldorado mill, located in the municipality of Rio Brilhante.

Despite ending the last year with a loss of R$ 13.4 million, the plant, which has also been in judicial recovery since 2019, aims to recover its positive performance among Brazilian mills.

With significant investment, the fund will provide a new lease on life for the mill, boosting its maximum production capacity to 4.1 million tons annually.

The Arab fund, which now controls the mills in the state, emphasizes its determination to follow the business plan, focusing on productivity to generate value for the various stakeholders involved.

In addition to the two mentioned mills, the conglomerate also controls the Costa Rica mill, whose details are still pending publication.

This initiative by FIP Agroenergia not only boosts the local economy and the agro-industry sector in Mato Grosso do Sul, but also highlights the importance of foreign investment as a fundamental factor for the revitalization and growth of companies in the sector.