Sao Paulo: The depressed sugar prices worldwide making it difficult for many sugar mills to survive. Due to surplus stocks, low prices and no profit recently, many sugar mills were forced to shut their operations. Now, this grim situation has also impacted Brazil sugar company Raizen.
Raizen, the major producer of sugar and ethanol, will temporarily close its Bon Retiro mill in Sao Paulo. The company stated that this would enable it to increase operations in Piracicaba production cluster.
The cane would be diverted for crush at the nearby mills in the region; therefore, closure would not impact cane processing projections. Well, this is not the first time, the installation will be shut, previously it was closed in 2015 due to low cane availability after a drought, and was reopened in 2017. In a relief to the mill workers, the company said most of the workers will be reallocated to other facilities.
In the month of August, French sugar company Tereos Commodities had also announced plans to shut down operations and stop sugar trading in Kenya and South Africa by 2020.
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