September 18/Global Insight -- U.S.-based agribusiness giant Bunge Ltd. yesterday announced that it has signed an agreement to acquire the Agroindustrial Santa Juliana sugar mill and ethanol plant from the Tenorio Group for an undisclosed sum.

According to a statement released by Bunge, the Santa Juliana mill located in the state of Minas Gerais started operation last year and will have the capacity to mill 1.6 million tons in the upcoming harvest season. Bunge said that it plans to expand the capacity of the mill to 4 million tons per year within the next few years.

The facility also produces electricity from bagasse. Although Bunge is already active in global sugar marketing and trading and has biodiesel and corn-based ethanol production activities in Europe and the U.S., it said that the Santa Julia acquisition represents its first production asset in the sugar and sugar-based ethanol industry.

From the September 24, 2007, Prepared Foods e-Flash