SAO PAULO, July 1 (Reuters) - Louis Dreyfus Company on

Tuesday opened an expanded coffee processing unit in Brazil's

southeastern city of Varginha, more than doubling the plant's

annual capacity for coffee processing and storage.

WHY IT'S IMPORTANT

Louis Dreyfus is one of the world's three largest green

coffee merchants. The company said the Varginha expansion would

position the hub as one of the largest and most advanced in

Brazil, the world's No. 1 coffee producer and exporter.

BY THE NUMBERS

The Varginha unit's processing capacity is set to reach 2.5

million 60-kilogram bags following the expansion, while its

storage capacity was increased to about 1 million bags, Dreyfus

said in a statement.

KEY QUOTES

"This expansion will streamline the supply logistics for

small and medium-sized coffee growers to meet both domestic

distribution and export demand," said Arthur Graf, head of

Dreyfus' coffee platform in Brazil.

"Today's opening marks a significant milestone in our growth

plans in Brazil, reaffirming our long-term commitment to the

country and the national coffee sector," he added.

ADDITIONAL CONTEXT

The Varginha unit in Minas Gerais state is part of Dreyfus's

broader coffee operations in Brazil, where it has been active

for over 35 years.

The company operates three major processing sites in the

country, also including facilities in Nova Venecia and Matipo,

alongside seven commercial offices in key coffee-producing

regions. The Varginha hub focuses on arabica coffee.