BRAZIL: Raízen suspends operations at two mills in São Paulo

Published: 11/14/2017, 12:22:20 PM

Brazilian sugarcane processor Raízen fired 200 employees at Tamoios mill, located in Araraquara, São Paulo state, the local workers' union says, according to Brazil's G1 news website.

The company said Monday that it will suspend activities in Tamoios for two years.

The lack of raw material was one of the reasons to close the mill, according to the workers' union.

Raízen said that the shutdown will occur due to a scenario of less availability of sugarcane in the region and to optimize logistics and production.

According to JCNet.com news website, Raízen will also suspend activities in its Dois Córregos mill, São Paulo state, for two years. Mayor Ruy Diomedes Favaro said that about 130 workers in the area will lose their jobs.

"The sugarcane destined for Tamoios and Dois Córregos mills will be redirected to other units of the company, without reducing the total grinding at Raízen group. Raízen's agricultural operation and cane suppliers will not be impacted," the company said in a statement to JCNet.com.