The citrus company of Argentine origin, which has been operating in Uruguay for over 20 years, has established its new plant in Paysandú. This fundamental step consolidates its leadership as the world's top lemon processor.

San Miguel, a global leader in the production and export of natural lemon-derived ingredients, inaugurated its lemon processing plant in Paysandú, marking significant productive growth for the company.

The firm has been working in Uruguay for over 20 years. Its relationship with the country began in 2000 with the leasing of fields and continued in 2002 with the acquisition of El Milagro. In 2013, a production expansion process was undertaken with the planting of more than 1,700 hectares in the southern, central, and northern parts of the country. Over the years, investments have been made in various businesses within the country, culminating in the operation of this model plant, which will process over 60,000 tons of lemons in 2024, aimed at producing essential oil, concentrated juice, and dehydrated lemon peel. All products are used as raw materials for food, beverage, flavor, and fragrance companies.

The project is distributed in 5 stages, with an investment of around $33.6 million in this plant, in addition to the investment in lemon plantations that the company has been developing since 2014, totaling $75.2 million. The ultimate goal is for the plant to increase production from 30,000 tons recorded in 2022 to 100,000 tons by 2027, undoubtedly a significant quantitative and qualitative leap.

This important advancement was made possible by an agreement with Azucitrus, which included the acquisition of the Novacore S.A. citrus fruit processing plant, located in this area. Both companies have maintained a commercial and productive partnership since 2016.

"For several years, we have chosen Uruguay as our production origin, especially Paysandú, where we have been forging a relationship with its people and authorities. It is a city with extensive industrial experience, strategically located in a central area of the country. We are delighted to place the heart of our development plan here, a long-term project that will bring foreign exchange and employment for several decades," emphasized Pablo H. Plá, CEO of San Miguel.

This project will also boost local employment and economic activity. During the construction of this new plant, Uruguayan suppliers were used, and over the past few months, 150 people worked directly on the project.

Indirectly, work was done with local logistics companies, stainless steel and supply providers, also activating small workshops in Paysandú for mechanized and folded works. The technology for the machines and equipment came from Uruguay, Brazil, China, Argentina, India, and Switzerland.

Regarding collaborators, San Miguel employs 140 industrial employees and more than 1,000 temporary agricultural workers. With this inauguration, the plant has 39 new positions.

Sustainable Development

Speaking of sustainability, we can affirm that sustainable development is in the company's DNA. Therefore, a significant investment was planned in environmental matters to adapt the effluent treatment system to the planned production capacity. The total investment during 2023 and 2024 is $5.2 million. This outlay allowed the incorporation of new high-efficiency technology for their treatment, which will also reduce greenhouse gas emissions through a system for reusing biogas generated in the process, featuring an anaerobic reactor and, during this year, the addition of an aerobic reactor.

This project is part of a long-term productive program in Uruguay, aiming to strengthen San Miguel's sustainable value proposition for its more than 200 customers worldwide by diversifying its origins and products. Thus, it seeks to consolidate the company's current leadership as the world's leading lemon processor and enhance Uruguay's agro-export profile.

About San Miguel

S.A. SAN MIGUEL A.G.I.C.I. y F. is a global agro-industrial company of Argentine origin, with a customer-oriented business model. It is the world leader in the industrial processing of value-added lemons, achieving 15% of the global lemon grinding.

With 69 years of experience, it has achieved, through its significant market position, the development of a highly efficient logistics platform and substantial commercial penetration.

San Miguel is recognized by its more than 200 clients in over 50 countries as a reliable supplier of industrialized lemons that maintains high-quality standards, but above all, as a long-term partner that shares values and respectful working methods for people and the environment.

It has an integrated business model, considering market perspectives and encompassing all stages of the value chain process.