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Ethanol producer closes.

ETHANOL PRODUCER CLOSES. Campos de Pese has indefinitely suspended the production and marketing of ethanol because the price set by the government for the biofuel does not even cover the cost of acquiring sugar cane, reports (Nov. 17,2014). The 40% decrease in the ethanol price established by the government last August affected the cost structure of the company, which in a statement sent to the media said that the decision taken by the government "changes the rules of the Game and violates legal certainty." Rafael Gonzalez, President of the Board of Campos de Pese said the company "three years ago invested about $100 million in expanding its operations and the acquisition of a distillery, attracted by the government's interest in producing biofuel." According to the manager, promises were made to both the company and its employees, that a decision that would be taken to safeguard this project and the social and environmental benefits involved, promises that in his opinion were not kept.

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Title Annotation:PANAMA
Publication:Caribbean Update
Date:Dec 25, 2014
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