SAO PAULO (AP) — Cargill plans to build a corn processing plant in Brazil to produce starches and sweeteners, building on its investments in the South American country, which is becoming a magnet for agribusiness investment.
Cargill plans to invest 350 million Brazilian reals ($210 million) to build the plant. The facility will boost Cargill's corn processing capacity in the country by 30 percent. The company said it hasn't decided where to build the plant, and is considering locations in three Brazilian states. The plant is slated to open in 2013.
This is Cargill's second investment in Brazil since March 2010, when the company expanded a corn processing plant that also makes starches and sweeteners.
Other companies have invested in Brazil as well. In 2008, agribusiness conglomerate Archer Daniels Midland announced a joint venture with Brazil's Grupo Cabrera to make sugar-based ethanol. The companies will invest $500 million over seven years, with ADM putting up $370 million. U.S. meat company Tyson Foods Inc. has also expanded its footprint in Brazil, seeking to supply the local restaurant industry and a growing middle class with meat.
Privately held Cargill, one of the world's largest agribusiness firms, said it is expanding in Brazil to meet local demand there