Bauducco NE

completed

Bauducco is one of the leading food producers in Brazil. It produces and distributes basic food, staples, cookies and biscuits, part of which directed to the bottom of the social pyramid. The Bauducco owns 5 state-of-the-art, high capacity, and modern production facilities, for all product lines which allow them to be among the most competitive companies in the market.The Northeast region is one of the main biscuits markets in Brazil, where Bauducco has to compete with local players like M. Dias Branco and J. Macedo, which have plants in the region and have lower logistics costs. In order to be a competitive player in the market, Bauducco has decided to implement a plant in the region. The Project entails a $50 million investment to implement an industrial plant and a distribution center in Rio Largo, state of Alagoas. In December 2010, Bauducco expects to initiate the operations of the distribution center and the wafer product line (productive capacity of 9,000 mt), which is Bauducco’s most demanded product in Northeast.The Bauducco’s expansion project in Northeast of Brazil is in advanced negotiations with Alagoas State (AL) and the City of Rio Largo, to be built in the border of the Rio Largo urban area in an Industrial site. Rio largo is part of Maceio, AL metropolitan area that already has other industries like a sugar cane mill and a textile company. The new plant design is intended to be very similar to the existing Extrema factory with some improvements. It will be a state-of-the-art plant in terms of technology and Environmental Healthe and Safety (EHS)control. The plant will be built in stages and the first one will be a waffles production line with a distribution center.