The Wall Street Journal reported Wednesday that Brazilian billionaire Eike Batista's conglomerate is to invest as much as $40 million a day to meet growing demand for Brazilian commodities and manufactured goods in the coming years.

In an interview with the Wall Street Journal (WSJ), Batista said he plans to create a new shipping company, purchase a firm in the automation industry and partner with large global manufacturers in Brazil, among other initiatives, reported the WSJ.

According to the WSJ, Mr. Batista's plans could have a significant impact on a country that is growing fast but has serious infrastructure inadequacies. The company, which is invested in oil and gas, electric power, mining, logistics and real estate, is rapidly increasing its investments from about $20 million per day currently as demand for Brazilian raw materials—notably from China—rises.

The WSJ said a good portion of holding company EBX Brasil SA's investments is going to Porto do Acu, a massive port facility being built by his LLX Logistica SA in Rio de Janeiro state. Besides the port itself, which is projected to accommodate the world's biggest ships when it opens in 2012, the complex also includes a power plant, a steel mill and a car-making plant, among other businesses.

Mr. Batista further told the WSJ that a deal should be announced by June or July with a "European or Japanese" car maker to build a plant in Porto do Acu. He added that he plans to create a new shipping company to deliver goods overseas, with a goal of profiting on the global demand for Brazilian commodities and other products. He declined to give details.

General Electric Co. is also expected to take a site within Porto do Acu, where it will make equipment for the oil industry, which is growing rapidly due to massive discoveries along the Brazilian shoreline.
 
Mr. Batista told WSJ that EBX already has a full portfolio of businesses, but noting that the company is interested in acquiring a supplier of automation services in Brazil. Batista plans to carry out initial public offerings for two additional business units: gold miner AUX and copper concern CUX.

However, Batista did not provide the WSJ with a timetable for taking AUX and CUX to the markets, but said it should happen in the next few months.

18th March 2011