Sugar processor Sao Martinho and oil firm Petrobras are to expand the capacity of their jointly-owned BOA VISTA mill in Brazil in the next four years.

Crushing at the Boa Vista mill in the current harvest year (2011/12) is set to reach 2.3m metric tons.

The two companies joint venture, Nova Fronteira Bioenergia, will invest BRL520.7m (US$327.7m) in the expansion, which is expected to triple the mill’s capacity to 8m metric tons in the 2014/15 harvest year.

The joint venture will also invest BRL430.5m in industrial equipment and BRL90.2m in agricultural equipments.

Following completion of the expansion, 70% of the sugarcane crushed at the mill will be provided by Sao Martinho. The mill will have the capacity to produce 700m litres of ethanol.