Establishment of Production/Distribution Company for Bio-Diesel Fuel in Brazil

Feb. 22. 2007
Marubeni Corporation

Marubeni Corporation (“Marubeni”) establishes Agrenco Bio-Energia Ltda. (“A.B.E.”) in Brazil, which operates bioenergy complexes and produce bio-diesel fuel and soybean meal as a joint venture with Agrenco Group, an international grain trading company. Marubeni invests US$ 40 million in A.B.E. (own a stake of 33.3%). Marubeni aims to secure a supply source for bio-diesel fuel, global demand for which is expected to increase, in view of rising fossil fuel prices and growing concerns about the need to protect the environment Marubeni also aims to secure a supply source for soybean meal, set to enjoying growing demand, mainly in Asia.

A.B.E. plans to construct three bio-diesel fuel production plants and two soybean oil crushing  plants in Mato Grosso (MT), Mato Grosso do Sul (MS) and Parana (PR). In MT and MS produce bio-diesel fuel from soybean oil manufactured at own crushing plants. In PR construct a bio-diesel fuel plant adjacent to an existing local crushing plant. Each plant will start the operation from the beginning of 2008. Total production capacity of bio-diesel fuel is 400,000 tons, soybean meal 1,000,000 tons per annum. Target sales volume is 1 billion reals (US$480 million) for FY2009.

Marubeni anticipates growing demand for bio-diesel, not only in Europe, but also in Brazil. Brazilian government announced the mandatory mixture 2% of bio-diesel fuel with mineral diesel from 2008. It believes that the outlook for the business is secured by growing demand and utilizing Agrenco Group’s nation-wide soybean, origination network that enables advantageous material procurement.

<Profile of Agrenco Bio-Energia Ltda.>
Capital :  US$ 120 million
Investment shares : 66.7% Agrenco Group, 33.3% Marubeni
Location of headquarters : Avenida Juscelino Kubstcheck de Oliveria, 1400 – 7, Sao Paulo, Brazil
President : Antonio Iafelice

<Summary of Agrenco Group>
A grain trader based in Brazil that operates in over 30 countries worldwide. Marubeni and Agrenco jointly operate the port elevator company  (Terlog Terminal Maritimo Ltda (Marubeni’s share 25.5%), and made an business alliance for grain trading in the Asian market.

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