UPDATE 1-Brazil's Dedini sells four ethanol plants to PDVSA

(Adds details, context)

SAO PAULO, July 2 (Reuters) - Brazil's leading manufacturer of biofuel equipment, Dedini, said on Wednesday it has sold four ethanol distilleries to Venezuelan state oil company PDVSA.

Each plant will have a daily capacity to produce 700,000 liters of cane-based ethanol. The fuel will be used as an additive to gasoline, replacing a lead derivative used in Venezuelan gasoline, Dedini said in a statement.

A major oil producer, Venezuela plans to build 14 ethanol distilleries by 2012 with an output of 20,000 barrels per day of the biofuel, Dedini said.

The Brazilian company sold a pilot plant to PDVSA last year, with a daily capacity to produce 25,000 liters of ethanol.

This unit was the first of a broad project by the Venezuelan government to make the country self-sufficient in what it calls "ecological gasoline", a blend of ethanol (10 percent) with the fossil fuel, Dedini said.

Venezuelan President Hugo Chavez has criticized the use of food crops to produce biofuels saying it would increase hunger in the world.

Venezuela currently imports ethanol to mix in gasoline. Brazil is the origin for at least part of the imports.

The distilleries will be built in Barinas, Portuguesa, Cojedes and Trujillo states. Equipment should be delivered in 17 months, Dedini said. (Reporting by Inae Riveras; Editing by Marguerita Choy)