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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 the acquisition of a sugar mill in the South American country.

Indofood Agri, through its Brazilian business unit Indoagri Brazil Participacoes, and São 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 in June 2019. The mill, which has an annual crushing capacity of 1.8 million tons of sugar cane, is situated on a 6,048-hectare sugar 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, to be funded with a bank loan, for the rehabilitation of the plantation and renovation of the mill.

The Indonesian conglomerate controls 50 percent of the joint venture, with the remainder belonging to 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