The 100-year-old company, previously focused on agribusiness, expects to launch projects with potential sales of
R$100m over the next four years.
The 100-year-old company, previously focused on agribusiness, expects to launch projects with potential sales of R$100m over the next four years.
Miami, FL, February 17, 2015 /PressReleasePing/ - The 100-year-old JB Duarte, has chosen a new path for its business. The company has decided to focus on the real-estate market in the countryside of São Paulo, and it expects to launch projects with potential sales of R$100 million over the next four years. US investment fund Golden Eagle, which works with construction and real-estate development, is considering investing in the Brazilian company’s projects. JB Duarte, maker of vegetable oil, now bets on real estate.
The 100-year-old JB Duarte, which took root in the agriculture sector by betting on the production of vegetable oils and, more recently, the supply of wood, has chosen a new path for its business. The company has decided to focus on the real-estate market in the countryside of São Paulo, and it expects to launch projects with potential sales of R$100 million over the next four years.
The company was founded in 1914 and became famous with the creation of “Maria oil”, during
World War II. At the time, since it was difficult for ships to arrive from Europe with olive oil, due to the German blockade on the Brazilian coast, JB Duarte had the idea to launch a mixed product, which had 30% olive oil and the remaining 70% peanut oil. "It was so successful that even today the brand [now owned by Cargill] is the leader in the compound-oil segment," says
Laodse de Abreu Duarte, superintendent of JB and grandson of the company founder, José
Baptista Duarte. The company then started processing other oilseeds, such as soybeans, corn and sunflower. It went public in 1985 but, 11 years later, struggling amid growing competition with foreign groups, JB Duarte decided to lease its industrial unit and sell its brands to Cargill and Vida Alimentos.
In 2009, JB Duarte established New Realty, its real-estate arm, and shortly after decided to invest in an existing plantation of eucalyptus, on an area of 5 million square meters in
Pirapora do Bom Jesus, 55km from the city of São Paulo. But the project was short-lived, due to weak demand and low prices of wood. "Reforestation in São Paulo is no longer what it used to be. Pulp industries and conglomerates are going further into the countryside of the state in
search of areas with larger supply of raw material," Mr. Duarte says. In addition, the executive says, areas such as Pirapora, near the state capital, have become too expensive for wood production. "Within four years we expect to finish the eucalyptus harvesting in the area," he estimates. The new plans for the site involve the creation of two landfills. Two months ago, JB Duarte requested the first license to operate a construction and inert waste landfill (such as cement, concrete and bricks), and the company expects to obtain an installation permit within 120 days. The project is expected to have at least 20,000 square meters, with an estimated revenue of R$6 million to R$7 million.
Due to numerous environmental requirements, JB Duarte intends to join other companies already working in the segment and get the expertise needed to perform the work. "We’ve have already contacted multinationals in the industry and are awaiting the responses," Mr.
Duarte says. Nearly 20% of the land (1 million square meters) is expected to be allocated for this landfill. "But we still will take three years to make the project viable," he says. Another
30% of the area (1.5 million m2) may be used for industrial and logistics warehouses. "The easy access is a big draw, because of the proximity to two major highways in São Paulo:
Anhanguera and Castelo Branco.”
JB Duarte is investing in two other municipalities: Cabreúva and São José dos Campos. In…