On Sept. 13, Alltech opened a crop science production facility in Uberlândia, Brazil. The new plant will increase production capacity by 150 percent, reaching an annual production of 10 million liters as well as supplying the entire Central-West and Northeast Regions of Brazil more efficiently.
“The city is a prime example of logistic infrastructure for Brazil, so moving to this area (the Triângulo Mineiro) will benefit many of our customers,” said agronomist Ney Ibrahim, director of Alltech Crop Science in Brazil. “We will have greater options for transportation, logistic gains in speed and cost-effectiveness for the entire central region of Brazil, which will have an impact on agility and quality of service.”
In the last five years, Alltech Crop Science has attained an average annual growth of 30 percent, and the objective of this enterprise is to allow this growth to continue.
“Our production was already at 100 percent capacity,” said Ibrahim. “This expansion is an important step in our development and will give us the opportunity to reach our growth and production targets.”
This venture will also allow for the company’s Araucária (PR, Brazil) plant to service the grain markets, particularly in Brazil’s southern states of Mato Grosso and Mato Grosso do Sul as well as throughout Latin America. In all, $1 million was invested in the Uberlândia plant, and is expected to be recuperated during the first year of operation.
The state of Minas Gerais is the biggest consumer market for Alltech Crop Science in Brazil and will be directly impacted by the new facility.
“Locally, it will create new jobs and allow us to create new partnerships while also bringing tax benefits to our clients in the region, improving our competitiveness,” noted Ibrahim.
According to Ibrahim, due to the tax laws in Minas Gerais, customers in the region will see a decrease of 11 percent in taxes merely from purchasing the products locally.