Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

GranBio Buys Into American Process, Plans Brazil Chemical Plant

April 16 (Bloomberg) -- GranBio Investimentos SA, a Brazilian cellulosic-ethanol maker, bought 25 percent of technology developer American Process Inc. and will use its equipment to turn sugar-cane residues into chemicals.

The company will install the technology at a new plant it expects to start construction on next year and have operating in 2015, Bernardo Gradin, chief executive officer of Sao Paulo-based GranBio Investimentos, said today in a telephone interview. He didn’t disclose the value of the share purchase or the capacity of the new plant.

Granbio plans to produce so-called specialty chemicals that may be used in paints or lubricants and sell them at more than five times the price of ethanol, which is typically produced from cane juice in Brazil. The company plans to build the nation’s first large-scale ethanol plant that will also run on cane waste.

“These chemicals may sell for anything in between $2,500 to $4,000 a ton compared to $700 for ethanol,” Gradin said. “The investment though is much more than that required for a cellulosic-ethanol plant.”

The chemical plant may be built in the states of Sao Paulo, Bahia, Minas Gerais or Alagoas, where it plans to build its 82 million-liter (21.6 million-gallon) a year cellulosic-ethanol facility, he said. The company intends to build one new chemical plant for every new three ethanol-fuel plants.

GranBio Investimentos is 85 percent owned by GranInvestimentos, a holding company for the Gradin family, he said. The investment arm of national development bank Banco Nacional de Desenvolvimento Economico e Social owns the remainder.

To contact the reporter on this story: Stephan Nielsen in Sao Paulo at snielsen8@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.