Singapore agribusiness group Olam International is to invest in its first sugar mill in Brazil through the acquisition of Minas Gerais-based Usina Açucareira Passos (UAP).

Olam will pay US$128.6m for the sugar millier and invest $111.5m over the next five years to expand capacity and boost output, it said yesterday (29 May). The investment will be funded internally and with borrowings, it said.

UAP owns and operates a sugar mill in Passos, in the southern state of Minas Gerais, Brazil’s second-largest sugarcane growing area. The mill’s cane crushing capacity is 1.75m metric tonnes per annum with an output capacity of up to 200,000 metric tonnes of sugar per year.

The mill’s capacity will expand to 3m metric tonnes annually from 1.75m tonnes, Olam said, through the expansion of cane cultivation and additional renovation and refurbishment of agricultural equipment.

“Over the past three years, we have made and committed several investments in sugar, including two sugar mills in India and two sugar refineries – one in Indonesia and one upcoming in Nigeria. Brazil is the largest and one of the most cost competitive producers of sugar in the world, and is integral to executing our sugar strategy,” said Olam president for sugar Devashish Chaubey.

Olam said the investment is expected to be earnings accretive from the second year of operation.

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

Just Food Excellence Awards - Have you nominated?

Nominations are now open for the prestigious Just Food Excellence Awards - one of the industry's most recognised programmes celebrating innovation, leadership, and impact. This is your chance to showcase your achievements, highlight industry advancements, and gain global recognition. Don't miss the opportunity to be honoured among the best - submit your nomination today!

Nominate Now