SINGAPORE (Oct 4): Wilmar has partnered with Brazil’s largest sugar producer Raízen Energia to form a new joint venture, Raízen and Wilmar Sugar.

Wilmar and Raízen will take a 50% stake each in the new joint venture to meet global demand for “very high polarisation sugar”, while combining the strengths of Brazil’s largest sugar producer with that of a leading commodity trader.

The merger of Raízen’s output of 3 million metric tons of very high polarisation sugar and Wilmar’s existing origination in Brazil will make Raízen and Wilmar Sugar one of the largest exporters of Brazilian sugar with 4.5 million metric tons a year, says Wilmar in an aftermarket filing.

This joint venture has already received regulatory approvals, and will be headquartered in Singapore, conducting sugar origination through a wholly-owned subsidiary in São Paulo, Brazil.

Raízen aims to strengthen its position in the international market, according to Leonardo Gadotti, chairman of the board of directors of Raízen and Wilmar Sugar and executive vice president of Logistics, Distribution & Trading, Raízen.

“This will be achieved through a strategic partnership in the trading segment with our partner Wilmar, a company with considerable expertise in the sector,” says Gadotti.

Jean-Luc Bohbot, Group Head of Sugar at Wilmar International, and CEO of the Joint Venture, says: “Our project is a new step towards improving client service in the global sugar market, based on the complementary strengths of Raízen and Wilmar and their consolidated leadership position in the respective market segments in which each of the companies operate.”

Shares of Wilmar closed 1 cent higher at S$3.22.