Toyota Tsusho Corp (8015.T) the trading unit of Japan’s Toyota group (NYSE: TM) is in talks to build an ethanol plant in the Brazilian state of Goias, according to a Reuters report.
Local Brazilian newspaper Valor Economico reported on Tuesday that Toyota Tsusho is in the final stages of a feasibility study for the plant.
The company would partner with state-run energy company Petrobras (PETR4.SA) and local cane producers. Toyota and Petrobras would each own 20% of the plant, according to Valor.
The trade secretary of Goias told Valor that Toyota had signed a letter of intent to build the ethanol plant, but that they investment sill depended on infrastructure developments.
Toyota announced last month plans to build vehicles in Brazil to keep up with demand in the region.
Petrobras is working to expand exports of ethanol to 4.7 billion liters by 2012. The company plans to sign 20 contracts with local groups and build several new distilleries through partnerships, like the one with Toyota.
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