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Brenco will establish a Logistics, Sales & Trading operation in order to optimally manage its core ethanol production and other financial, operational and commodity risks. In addition, Brenco will work proactively with other Brazilian producers and with worldwide consumers of ethanol to develop innovative ethanol purchase and sale structures, which will introduce pricing flexibility and risk management products in response to their respective needs and to opportunities in the market.
Brenco's large-scale production and intention to be fully-integrated will allow the company access to opportunities not available to smaller ethanol producers, such as guaranteeing large volume, long-term supply agreements which will help to establish important relationships with Brazilian and worldwide customers and suppliers.
Brenco will invest or co-invest in ownership and/or leasing of key logistics assets in order to establish critical competitive advantage in securing both a local and global ethanol distribution infrastructure. Brenco considers investments in and the composition of its own logistics operations a fundamental pre-requisite toward capitalizing on the anticipated growth and competitive framework of the international biofuels market.
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