Archer Daniels Midland Company has reached an agreement to sell its sugarcane ethanol operations in Limeira do Oeste, in the Brazilian state of Minas Gerais, to JFLim Participações S.A.
We regularly review our asset portfolio to determine how best to maximize shareholder returns, and in this case, we have determined that our sugarcane ethanol operations in Brazil are unlikely to meet our long-term returns objectives. As our sole sugarcane ethanol operation in Brazil, this asset is too small for ADM to compete effectively in a challenging ethanol environment.—Chris Cuddy, president of ADM’s corn processing business unit
The transaction includes a sugarcane plantation and an ethanol distillery, which is capable of crushing up to 1.5 million tons of sugarcane and producing 37,000 gallons of ethanol per year. About 650 employees work in the plantation and plant.
The sale, which is subject to regulatory review, is expected to close in the second quarter of this year.