Four months after signing a memorandum of understanding, ETH Bioenergia – an Odebrecht Organization company – and Brenco concluded the asset merger process that led to the creation of a leading company in ethanol production and electric energy generation using biomass.
The new company, which will maintain the name ETH Bioenergia, will produce 3 billion liters of ethanol and 2,700 Gwh of electric energy in 2012. It will have a milling capacity equivalent to 40 million tons of sugarcane per harvest through its nine industrial units, with 100% mechanized agricultural operations.
Together, the companies already invested R$ 3.8 billion and have an additional investment commitment of R$ 3.5 billion from 2010 to 2012 to take the nine units to their maximum production capacity. "This strategic operation represents a decisive step in ETH’s growth plans and creates a leading bioenergy company that combines competitiveness and sustainability," said José Carlos Grubisich, CEO of ETH Bioenergia.
The two companies present a set of assets that combines technology and scale, strengthening the concept of product center formation. “The bioenergy sector should grow significantly over upcoming years and the new company will have many opportunities within this context,” said Philippe Reichstul, CEO of Brenco.
As part of the agreement, Odebrecht S.A., in association with Sojitz Corporation, will hold 65% of the ETH Bioenergia capital, and Brenco shareholders will hold 35%. As for the corporate governance, a board of directors will be formed with the participation of 10 members, seven of whom will be elected by Odebrecht/Sojitz shareholders and three of whom will be elected by the other shareholders.
The company resulting from the asset merger has 7,600 Members, and with the investment program planned over upcoming years, this figure will rise to 10,000 by 2012.
"ETH Bioenergia has a vocation for growth, and the strong investment program planned over upcoming years will allow for the creation of another 2,400 new jobs, in addition to the training of all the teams," said Grubisich.