ADM Eyes More Brazilian Ethanol Deals

CNN Money
November 04, 2008: 11:55 AM EST

Archer Daniels Midland Co. (ADM) is looking for other opportunities to expand its biofuels business in Brazil after announcing plans to enter the country's ethanol market for the first time.

The U.S. agribusiness group announced plans Tuesday to build two mills producing sugar-cane-based ethanol in partnership with Grupo Cabrera, a family- owned company operating in 10 Brazilian states.

The partners will invest an initial $500 million over seven years to produce an estimated 70 million to 90 million gallons a year of the renewable fuel. ADM is contributing $370 million and production is targeted for domestic consumption.

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