Sao Paulo: Jalles Machado, one of the major ethanol and sugar producers from Brazil, would set up a new sugar plant in the state of Minas Gerais, located near the Santa Vitoria ethanol facility, reports Reuters.
The company has announced to invest 170 million reais ($35.6 million) at a time when there is a tight supply of sugar in the global market. Sugar prices are at a peak and the situation is likely to remain same atleast for the next two seasons, analysts expect.
The production capacity of the plant would be 150,000 tonnes per crop and the plant will produce VHP (very high polarization) sugar which is meant for exports, said the company.
The company is operating two mills in Brazil and the new plant is expected to start operations next season.
The Santa Vitoria facility is producing only ethanol so far and the company expects that the sugar plant would use around 52% of the cane to produce sugar.
