Archer Daniels Midland (ADM) announced on 1 April that a deal had been made to dispose of its only ethanol plant in Brazil.
The distillery in Minas Gerais, and the sugarcane plantation attached, had a processing capacity of 1.5M tonnes/year of sugarcane and an ethanol production capacity of 37,000 gallons/year, Agrimoney reported.
Provided it received regulatory approval, the plant would be sold to JFLim Participacoes, the report said.
ADM announced in February that it was mothballing the facility, which had been shut down since December for maintenance.
Chris Cuddy, president of ADM’s corn processing segment said, “As our sole sugarcane ethanol operation in Brazil, this asset is too small for ADM to compete effectively in a challenging ethanol environment”.
Demand for ethanol was under pressure in Brazil and consumption was down by 6.6% in the year to April, according to fuel regulator ANP data.
ADM’s announcement followed the news that it is considering the sale of three of its US ethanol plants.
In 2015, ADM’s biofuel segment earnings were down 79% to US$149M, according to Agrimoney.