Global agribusiness giant Cargill announced on 11 November that it has bought Brazilian oleochemicals producer SGS Microingredients (SGS Agricultura e Industria Ltda) for an undisclosed sum.

Based in Ponta Grossna, Paraná state, SGS Microingredients operates in four business segments: oleochemicals; pet/feed ingredients; food ingredients; and polymers.

Paul Hoffman, general manager of Cargill Industrial Specialities in Brazil, said the company’s focus was to increase current capacity utilisation from 35% to a target of 80-90%, according to Valor International.

Annual revenue in Ponta Grossa stood at between BRL$80-90M (US$23-26M) but the plant had the potential to expand its sales in the industrials segment to around BRL$500M/ (US$144M) year in Brazil, the report said.

“SGS Microingredients brings capabilities and complementary processes that add value to our existing industrial specialities chain,” Hoffman said in a press release.

“Cargill’s results in this sector in recent years have been above the market average. We have an important position within the industrial oil market and our goal is to be a leader in providing bio-solutions and bio-products to replace petroleum oil.”

Cargill’s industrial oils business operated in Marinque in neighbouring São Paulo state, where its plant was at the limit of production, the press release said.

SGS Micronutrients began operating a fatty acid distillation plant in 1999 utilising feedstocks such as soyabean, corn, palm, canola and sunflower oils. It launched a hydrogenation plant in 2002, and an emulsifier production plant in 2006 that resulted in the creation of its food ingredients division, specialising in ingredients for bakery, dough, dairy, chocolate, margarine and ice cream products.

In 2008, it started operating a molecular distillation plant to obtain monoglycerides and launched a new fatty acid distillation plant in 2013, increasing the production capacity of distilled fatty acids to 30,000 tonnes/year.

Its oleochemical products include fatty acids; non-GMO fatty acids; stearic, oleic and palmitic acids; esters and vegetable glycerine.