Glencore to more than double its Brazil cane mill

* Current cane crushing capacity at 1.1 mln T

* Company to build sugar factory onto Rio Vermelho mill

SAO PAULO, Brazil, Dec 10 (BestGrowthStock) – Commodities trader Glencore will
more than double the capacity of its Rio Vermelho cane mill after it bought
a 76 percent stake in the company, the mill’s advisor to the deal,
Czarnikow, said Friday.

Swiss-based Glencore [GLEN.UL], considered the world’s largest
diversified commodities trading house, paid more than $80 million in its
first-ever investment in the cane sector.

The deal allows the Garieri family, the former controlling shareholder,
to sell its remaining 24-percent stake to Glencore within two years, said
Czarnikow’s corporate finance director, Tiago Medeiros.

“(The deal) will provide the cash requirements and expertise to more
than double Rio Vermelho’s crushing capacity,” Medeiros said, adding it can
currently crush up to 1.1 million tonnes of cane per season.

The latest mills built in Brazil are projected to crush up to between 3
million and 5 million tonnes of cane per year.

Glencore, a major sugar trader, will also invest to install a sugar
factory in the mill, which is located in the state of Sao Paulo. It
currently makes only ethanol to be sold in the local market.

Officials at Glencore in Sao Paulo were not immediately available to
(Reporting by Inae Riveras; Editing by John Picinich)

Glencore to more than double its Brazil cane mill