Asian commodity trader Wilmar International is joining forces with a leading Brazilian producer as it seeks to expand its presence in one of the world’s most prized sugar markets.
Wilmar and Raízen are to create a joint venture called RAW and target the fast-growing market for very high polarization (VHP) Brazilian sugar, reports Neil Hume in London.
Produced from cane grown in the country’s sugar heartland, VHP is one of the most sought after raw sugar exports. Its high sucrose content makes VHP much easier to refine and is popular in Asia and the Middle East.
RAW will ship around 4.5m tonnes of VHP sugar from Brazil each year making it almost as big as market leader Alvean, a joint venture between Cargill and Brazil’s Copersucar.
“Our main incentive is the potential to further improve the return to our production assets by strengthening our presence in the international market,” said Leonardo Gadotti, a senior executive at Raízen.
Although its main focus is on oilseeds such as palm oil and soyabeans, Singapore-listed Wilmar’s has been expanding its presence in sugar. It entered the market six years ago through acquisitions in Australia and Indonesia.
“RAW will offer a very high level of service and information to our clients at origin in Brazil, as well as in destination markets worldwide, said Wilmar’s Jean-Luc Bohbot, who will run the joint venture from Singapore.
Sugar prices have risen sharply this year, catching a number of traders on the hop. Wilmar, which has a market value of $15bn and controlled by billionaire Kuok Khoon Hong, blamed losses in sugar and soyabeans for a recent profit warning.
http://ift.tt/2dpP0t9
Tidak ada komentar:
Posting Komentar