Bunge Plans to Spend $2.5 Billion to Boost Brazilian Sugar, Ethanol Output

Bloomberg
By Lucia Kassai - Aug 19, 2011 2:14 PM CT .

Bunge Ltd. (BG), the world’s second- largest sugar trader, said it plans to spend $2.5 billion to boost sugar and ethanol production in Brazil over the next five years and may sell bonds to help finance the investments.

“We are very positive on the sugar and ethanol outlook,” Chief Executive Officer Alberto Weisser said at a press conference in Sao Paulo. “Our investments come at the right moment, as the world is yearning for food and clean energy.”

Bunge plans to invest the cash between next year and 2016 to boost capacity at eight mills in Brazil, the world’s largest sugar producer and exporter. The plan will boost sugar-cane crushing capacity to 30 million metric tons a year from 21 million tons, according to the White Plains, New York-based company. Sugar and ethanol capacity will grow by almost half.

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