Energy giant Royal Dutch Shell and Cosan, the largest ethanol producer, are now united under the brand Raizen. In January the European Commission gave its blessing to the deal. The company starts with assets of $ 20 billion and estimated revenue of $ 50 million.
A cabalistic name
Raizen the junction of the Portuguese words for root (raiz) and energy (energia). The new company will keep its strong brand name Shell.
Sugar and alcohol, the plans are equally ambitious. In a privileged position as a leader in this market, Raizen should focus on acquisitions, “greenfield” projects (construction of new plants) and increased capacity of its existing plants to raise sugarcane crushing capacity of 62 million tonnes to 100 million tons per harvest, which will allow a jump in sugar production from the current 4 million to 6 million tonnes of ethanol from 2.2 billion to 5.2 billion liters and power of 900 megawatts (MW) to 1,300 MW. The company sells 10 billion liters of alcohol.
Exploring Asia and Europe
Vasco Dias, Raizen’s CEO, explained in the press conference that the large capillary of Shell’s distribution in Europe and Asia will be an precious advantage in marketing sugar cane ethanol in these markets. It is expected that the joint venture will produce 20 billion gallons per year.
Published by Hildete Vodopives
Hildete de Moraes Vodopives is founder of Brazil Global and of the Harvard Strategists Group. She has a PhD in Economic History and advises companies and investment agencies in international business development.She served as Corporate Relations Director and later, on the board of the Brazilian Investment Analysts Association (APIMEC).
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Email address for Mr. Vasco Dias, CEO, Reizen?
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Hi Cecil, sorry but we do not have his email. I suggest you contact them through their website.
thanks for message!
a happy 2012. Hildete
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