SAO PAULO, Nov 9 (Reuters) - Biosev SA, the sugar and ethanol unit controlled by commodities trader Louis Dreyfus Co, will stop operations at a mill in Brazil’s top cane belt to reduce costs, it said on Thursday.
Biosev, the world’s second largest cane processor behind Brazilian rival Raízen, said the Maracaju mill in Mato Grosso do Sul state will be idled immediately for an undetermined period of time.
The cane processed at the mill will be transported to two other mills that Biosev operates in the region, a new frontier in Brazil’s center-south sugar belt.
“The decision is part of a plan to cut production costs and strengthen cash generation,” Biosev said in a securities filing.
Earlier Thursday, Biosev reported a net profit of 33 million reais ($10.17 million) in the second quarter of the 2017/18 crop period. The company went through a long period of losses in recent years as Brazilian sugar and ethanol producers struggled with unfavorable market prices for both products. ($1 = 3.2464 reais) (Reporting by Marcelo Teixeira; Editing by Jeffrey Benkoe)
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