Humane Practices
INDUSTRIAL SECTOR
Industrial Oils and LubricantsThis Unit supplies renewable plant-based raw materials for the processing industry in many different areas. It produces high-performance lubricants under the brand name Innovatti, including oils, esters, waxes, coalescing agents, polyols lecithin and plantbased fatty acids, as well as synthetic esters and customized products.
This business grew substantially in 2009, which led the Unit to use 94% of its capacity and double its production volume, with sales reaching 33,400 metric tons. This positive performance is the result of adopting a strategy prioritizing closure of long-term contracts with strategic customers and maintaining growth in target markets by providing innovative solutions adapted to each profile.
A noteworthy project in 2009 was construction of a bottling and storage line at the plant in Mairinque (state of São Paulo), with US$ 3.6 million invested. Inroads to the biodiesel market were made through Innovatti, and supply began in January 2010. Sale of a lubricant for compressors in China was a high point on the international scene.
Metals
In Brazil, Cargill Ferrous International works with the steel and mining industries to provide financial products along with solutions in logistics and raw materials such as coal and scrap. The Business Unit also purchases iron ore, pig iron and steel from these industries, which are sold on the international market.
In 2009, CFI became a Trading Company operating in iron ore with shipments of 650,000 metric tons through Brazilian and Chilean ports.
CFI also initiated metallurgical coal operations, completing the first deal with the purchase and sale of a Colombian coal vessel to the Brazilian steel industry. In pig-iron operations, in which Cargill is the market leader globally, the company maintained a market share of 15% to 20% with shipments of 365,000 metric tons (50% less than in 2008). It bought and shipped 150,000 metric tons of Brazilian flat and long steel.
Heavy losses were recorded in the steel industry in the first half of 2009 due to the drastic decrease in demand and resulting lower production. Brazilian exports totaled 8.9 million metric tons or US$ 4.9 billion, a decrease of 38.6% compared to the previous year. Cargill Ferrous International was able to deal with these challenges and manage risk at the worst times of the crisis without recording significant losses.
