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Indofood Agri Joins Hands With J&F Investimentos to Acquire Sugar Mill in Brazil

Jakarta. Indofood Agri Resources, the agribusiness unit of Indonesian conglomerate Indofood Sukses Makmur, announced on Monday (19/02) that it has set up a joint venture with Brazil-based investment holding company J&F Investimentos for theA�acquisition ofA�a sugar mill in the South American country.

Indofood Agri, through its Brazilian business unit Indoagri Brazil Participacoes, and SA?o Paulo-based J&F Investimentos invested about $7.2 million each in the joint venture, known as Canapolis Group.

Canapolis was formed in November last year and the company acquired a sugar mill in Brazil’s fourth-largest state, Minas Gerais, for $42 million in December through a court auction after the mill’s previous owner was declared bankrupt.

The acquisition will be paid off in four installments, with the final payment due inA�June 2019. The mill, which hasA�an annual crushing capacity of 1.8 million tons of sugar cane, is situated on a 6,048-hectare sugarA�plantation.

Canapolis expects to start milling operations by 2020, once it completes the mill renovation and starts harvesting sugar cane.

The company has also set aside capital expenditure, toA�be funded with a bank loan, forA�the rehabilitation of theA�plantation and renovation of the mill.

The Indonesian conglomerate controls 50 percent of the joint venture, with the remainder belonging toA�J&F Investimentos.

Singapore-based Indofood Agri is mainly engaged in the production of palm oil, sugar cane and rubber.

J&F Investimentos is a holding company with numerous subsidiaries in various business sectors, including agribusiness, manufacturing, waste management and electricity generation.

One of its best-known subsidiaries is footwear company Alpagartas, which produces Havaianas flip-flop sandals.

Source: Jakarta Globe