May 25, 2012
CHS Inc. buys 25% ownership of Brazil's TCN
The acquisition of 25% ownership of TCN, a Brazilian logistics company founded by NovaAgri, has been announced Thursday (May 24) by the leading farmer-owned US cooperative, CHS Inc.
NovaAgri will own 75% of TCN shares. In addition to the ownership investment, CHS also signed a long-term agreement with TCN, securing export terminal access at the Port of Itaqui, Sao Luis, Brazil.
"This major and strategic investment gives CHS competitive access to the fastest growing region of Brazil and further strengthens our ability to supply soy and corn to global customers," says Stefano Rettore, senior vice president, CHS South America, Sao Paulo, Brazil. "We believe demographics and income growth, especially in developing economies, means the world demand for soy and corn will increase. This partnership fits into CHS aspirations to expand our global commodities footprint to meet growing demand, and to continue to add value to our member-owners' investment."
Infrastructure development at the Port of Itaqui is expected to greatly improve market access for Brazilian growers by reducing significant logistical bottlenecks and, Rettore says, increased exports will also improve Brazil's trade balance.
In October 2011, TCN was awarded the right to construct one of four export terminals in the Port of Itaqui, in the north eastern Brazilian state of Maranhao on the Atlantic Ocean. Construction will begin in August 2012, with completion expected during the second half of 2013.
Founded in 2008, NovaAgri is a national provider of integrated logistics, serving the Brazilian soft commodities sector. Through the ownership and operation of integrated infrastructure facilities including ports, grain elevators and silos, NovaAgri provides logistical solutions and services to a wide array of clients.
CHS Inc. is the nation's leading cooperative, owned by farmers, ranchers and co-ops across the US. A diversified global energy, grains and foods business and a Fortune 100 company, CHS is committed to helping producers and member cooperatives grow their businesses through its domestic and global operations. CHS supplies energy, crop nutrients, grain marketing services, livestock feed, food and food ingredients, along with business solutions including insurance, financial and risk management services. The company operates petroleum refineries/pipelines and manufactures, markets and distributes Cenex(R) brand refined fuels, lubricants, propane and renewable energy products.