By Brazil Stock Guide – Votorantim Cimentos has signed a power purchase agreement (PPA) with Auren Energia, Brazil’s third-largest power generator, securing renewable electricity supply for its industrial operations in the country’s Northeast and Southeast regions.
The deal is tied to the Cajuína I wind complex, located in the municipality of Lajes in the state of Rio Grande do Norte. Under the agreement, Votorantim Cimentos will also become a shareholder in a portion of the wind generation project.
The wind complex is notable for being operated entirely by women, according to the companies.
Power delivery from Cajuína I is expected to begin in March this year. Once the contract takes effect, more than 90% of the electricity consumed by Votorantim Cimentos in Brazil will come from renewable sources.
Both companies are linked through Grupo Votorantim, which owns 100% of Votorantim Cimentos and holds a 39% stake in Auren Energia.
Investment Plan
The agreement is part of Votorantim Cimentos’ R$ 5 billion investment plan in Brazil for the 2024-2028 period. As part of the same program, the company announced it will build a new mortar plant in Edealina, in the state of Goiás, with annual capacity of 300,000 tons. The plant is expected to start operating around mid-2027.
Votorantim Cimentos is also expanding its cement plant in Edealina through the construction of a new grinding line that will double production capacity to 2 million tons per year. The new cement mill arrived at the site in January and the company expects the new grinding operation to begin in April 2026.
Additional investments include the modernization of the cement kiln at its plant in Xambioá, in the state of Tocantins, and the restart of cement mills at facilities in Esteio, Rio Grande do Sul, and Laranjeiras, in the state of Sergipe.
Combined with the already completed capacity expansion at the Salto de Pirapora plant in São Paulo state, as well as resumed operations in southern Brazil and ongoing expansions in Edealina and Nobres, in Mato Grosso state, the company expects to add 3.7 million tons per year of cement production capacity across the country.
In Nobres, the company will install a new grinding line that will lift cement output capacity to 1.2 million tons per year. The site will also increase agricultural limestone production capacity to 900,000 tons per year.
Votorantim Cimentos said about R$ 2.4 billion of the total investment plan had already been executed or completed by the third quarter of 2025.