Avebe, the Dutch starch producer, will join Pilao Quimica Ltda concern, the Brazilian producer of tapioca-based starch and derivatives, in a joint venture. As part of this collaborative effort, Avebe will participate in a new factory to be built in southwest Brazil, and will contribute its wealth of knowledge and expertise in the area of producing tapioca derivatives. The Avebe sales office recently set up in Brazil will act as the central point for the sales of the starch derivatives to be produced by the new factory, providing knowledge/expertise and other support. Avebe expects to be able to increase its stake in the new venture to a 51 per cent majority interest within a few years. Avebe claims this joint venture will enable it to gain a firm foothold in the Brazilian market for high-quality technical applications. It fits in well with Avebe's policies in the international arena, where regions outside Europe will get greater responsibility for their own financial and commercial results. Source: Avebe
