Alexandre Rocha*
São Paulo – The sugar refinery that is being built in the Homs region, in Syria, and has capital from the Brazilian Crystalsev is half way through. "Fifty percent of the construction is ready," said businessman Maurílio Biagi Filho, a director at Crystalsev, to ANBA yesterday (14). According to him, the first production tests should begin at the end of this year and the start of production is scheduled for the beginning of next year.
The Brazilian company has 10% of the capital of the business and has among its partners US multinational Cargill, and Syrian businessman Najib Assaf, who is the main partner in the business. The works began in the first half of last year. The initial forecast was for the project to cost US$ 75 million, but, according to Biagi, this value should rise after adjustments. The original schedule was even delayed for a year in the beginning.
The refinery will have a capacity to process one million tonnes of sugar a year and should employ around 300 people, according to Biagi. The objective is to supply the market in Syria and neighbouring countries.
Participation of the Brazilian company does not guarantee, however, that the raw material, i.e., bulk sugar, will be imported from Brazil. "The purchases will be made on the global market, but I hope that they are made in Brazil, as we have all possibilities of supplying the product," he declared.
Brazil is the greatest producer and exporter of sugar in the world, as well as being the main supplier in the Arab market, and is strengthening this position with the limitation of European Union (EU) sugar exports by the World Trade Organization (WTO).
Just to give an idea, according to information supplied by the Ministry of Agriculture, Livestock and Supply, exports of the commodity from Brazil to the Arab world generated US$ 2.1 billion last year, an increase of 66.4% in comparison to 2005. To Syria alone, sales reached US$ 130 million, growth of 28.4%. In January this year, sector shipments to the region totalled US$ 168.2 million, 136.5% more than in January 2005. To Syria, exports totalled US$ 14.7 million in the month.
According to economist Leonardo Bichara Rocha, of the International Sugar Organization, with the limitation of EU exports, mainly refined sugar, the countries of the Middle East are investing in refineries and buying sugar in bulk from Brazil. In fact, last year Brazilian exports of sugar in bulk to the Arabs grew 93%, much more than those of refined sugar.
Crystalsev, based in the city of Ribeirão Preto, in the interior of the southeastern Brazilian state of São Paulo, sells its produce from nine mills. According to Biagi, the volume traded by the company reaches one billion litres of alcohol and two million tonnes of sugar per year.
*Translated by Mark Ament