Cosan S.A. Industria e Comercio

completed

Cosan S. A. Indústria e Comércio (Cosan, the company or Group) is the parent company of the largest integrated sugar and ethanol producer and exporter in Brazil, and one of the largest and most efficient producers in the world. Cosan reached this position by acquiring and turning around sugar mills, mostly during the last four years. Cosan operates 12 mills, 3 sugar refineries and one export terminal at the Port of Santos. All facilities are located in the State of São Paulo, in Brazil’s Center-South region, with the exception of one small sugar refinery located in the State of Santa Catarina, South region. In FY 2004, ended April 30, Cosan milled 26.1 million mt of cane, sold 2.2 million mt of sugar (of which 82% or 1.8 million mt were exported), and 946 million liters of ethanol (of which 23% or 214 million liters were exported).The proposed project, to be implemented over the FY05 to FY07 period (May 2004 to April 2006), will allow the company: - to maintain its leading position in the Brazilian sugar industry; - to respond to growing demand for fuel ethanol, particularly in the domestic market; and - to respond to increased competition in international markets by improving agricultural yields and cutting costs. More specifically, the project will allow Cosan to increase its installed milling capacity, improve sugar cane agricultural yields and further reduce costs. The project will also support Cosan’s efforts to improve monitoring and compliance of environmental and social standards.