Management Insights: Cosan

November 21, 2011

About Cosan (CZZ)

Cosan is one of the world’s largest growers and processors of sugarcane. It has the capacity to crush about 60 million tons of sugarcane annually into raw and refined sugar products. The company is also the largest ethanol producer in Brazil. The company’s other activities include generating electricity using sugarcane by-products, managing an ethanol JV with Royal Dutch Shell, and operating about 4,500 fuel service stations.

Despite high prices for the biofuel and a massive expansion in the domestic fleet of cars that use it, Brazil’s roughly $30 billion a year sugarcane industry has struggled with sluggish investment and insufficient supply.

Brazil’s sugar and ethanol industry needs $80 billion of new investment in the next 10 years to meet global demand, according to industry association Unica. About 250 new plants are needed to process the country’s sugarcane, yet only five are starting this year.

Hear how Cosan is boosting production capacity and plans to become a leading provider in the global ethanol market too.

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