São Paulo – The government of the state of Minas Gerais and Sada Group signed a protocol of intentions this week for investment of 354 million Brazilian reals (US$ 153 million) in the state. The group, which operates in the transport sector, is expanding its businesses into the bioenergy segment in northern Minas Gerais and also implementing a smelting unit in the city of Sete Lagoas. The projects are going to generate 1,450 direct jobs.
Of the total investment forecasted, 177 million reals (US$ 77 million) should be turned to the expansion of Sada Bio-Energy and Agriculture, in Jaíba, Northern Minas, a producer of alcohol and cogeneration of energy from sugarcane bagasse. The project began in 2008 and should be concluded by late 2011, with the generation of 750 direct jobs. When the works are concluded, the installed grinding capacity should be 1.7 million tonnes of sugarcane and the production capacity should be 93,500 cubic metres of alcohol and 48 MWh of energy (co-generation).
The protocol of intentions also forecasts the implementation of an agro industrial unit turned to the production of alcohol and co-generation of energy from sugarcane bagasse, in the city of Bocaiúva, also in Northern Minas. The investment should be 150 million reals (US$ 65.5 million), with the generation of 500 direct jobs.
The Bocaiúva project should begin in 2010, with entry into operation scheduled for 2013, when there should be 15,000 hectares of cultivated area and installed capacity for the grinding of 1.2 million tonnes of sugarcane and production of 85,000 cubic metres of alcohol. Co-generation should total 24,000 MWh. Forecasted revenues are 15 million reals (US$ 6.6 million) in 2010, rising to 48 million reals (US$ 21 million) by 2011 and reaching 97 million reals (US$ 42.4 million) in 2013.
In Sete Lagoas, in turn, the group plans to expand its industrial park for the production of new components, already sold to clients, and to install a smelting unit for aluminium products for automotive use. Investment should be 27 million reals (US$ 12 million) in civil construction and purchase of machinery and equipment. The enterprise should generate 200 direct jobs, and the workers should be hired and trained locally. Works should begin in May this year, and completion is scheduled for 2011.
The unit should produce smelted aluminium and steel parts (steering wheels, engine blocks, cylinder heads, axle sleeves and engine couplings). The production capacity should total 12,900 tonnes. Forecasted revenues are 130 million reals (US$ 57 million) in 2009, rising to 160 million reals (US$ 70 million) in 2010 and 200 million reals (US$ 87 million) in 2011.
Sada group should count on financing by the Minas Gerais Development Bank (BDMG) to finance the turning capital and the fixed investment. The Minas Gerais Integrated Development Institute (Indi) should provide support to the company during the phases of implementation and operation of the project, especially with regard to the development of financing and licensing. The state and the Minas Gerais Electric Company (Cemig) should establish partnerships for the co-generation of energy.
*Translated by Mark Ament
