Vale do Parana SA

completed

Vale do Parana SA (Vale do Parana or the company) is a special purpose company established in Brazil to grow sugar cane, construct, and operate a state-of-the-art mill to produce fuel ethanol and sugar in Suzanapolis, western region of the State of Sao Paulo, Brazil. The mill will be developed in phases starting in 2008, when it will produce approximately 70,000 m3 of ethanol, until 2011, when it will produce approximately 90,000 m3 of ethanol (for the internal market) and 140,000 mt of raw sugar for the export market. Upon full implementation, Vale do Parana will have a total milling capacity of 2 million mt of cane/year supplied from 22,000 ha of sugar cane, 50% of which will be cultivated on leased land with the remainder sourced from dedicated third-party suppliers. The project will take advantage of: - favorable export market conditions created by the reform of EU’s sugar policies; - increased demand for fuel ethanol, mainly in the Brazilian market, but also of prospects for increasing international demand; - sponsors experience in operating sugar/ethanol mills in Brazil and other countries in Latin America; and - the agronomic and infrastructure environment that allows mills in this region of Brazil to be the world’s lowest cost producers.