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Brazil sugar group Raizen halts ops at plant after fire on cane fields



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Adds details of the fire and the plant in paragraphs 2-6, analysts remark in paragraph 7-8

SAO PAULO, Aug 23 (Reuters) -Brazil's top sugar and ethanol producer Raizen RAIZ4.SA said on Friday that industrial operations at its Santa Elisa plant in Sao Paulo state have been halted since Thursday due to fires in sugarcane fields around the plant.

The company said it had to evacuate workers from the plant, one of its largest in the country, on Thursday due to the fires, and it has not been able to resume operations yet as subsequent fires were reported. It added there were no victims.

Raizen, the world's largest sugarcane processor, did not disclose the output capacity of the plant, which is one of the more than 30 it owns, although a handful of them were not currently active.

The company said authorities had brought the fire under control on Thursday, but fire outbreaks were seen again on Friday.

"Industrial operations will be resumed as soon as it is safe for our employees," Raizen said.

The unit's biomass storage and some equipments were among the areas hit by the fire, according to another statement from Raizen, dated Thursday. It did not provide details on the affected equipment.

There is an increase in fires on cane fields this year in Brazil due to very dry conditions after months of just a few or no rains.

Datagro consultancy said that until the end of July, the number of fires were 60% higher when compared to the same period a year ago.

It added that although the burned cane can still be harvested and processed, losses could be reported depending on the sugarcane's stage of development, while in fields where harvesting was already completed the fire can delay new plantings, though these cases have not been common.



Reporting by Roberto Samora in Sao Paulo and Marcelo Teixeira in New York; Writing by Andre Romani; Editing by Brendan O'Boyle and Aurora Ellis

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