Marking the completion of one of Brazil’s largest ever private investment projects, the mill in Ribas do Rio Pardo, Mato Grosso do Sul state, will have an annual production capacity of 2.55 million tonnes of eucalyptus pulp, increasing Suzano’s production capacity by more than 20% to 13.5 million tonnes a year.
The initiative, called the ‘Cerrado Project’, is the result of a total investment of R$22.2bn (around £3.3bn), of which R$15.9bn was allocated for the construction of the plant and R$6.3bn was earmarked for initiatives such as the formation of the planting base and the pulp outbound logistics.
Suzano also has the capacity to produce 1.5 million tonnes of paper per year, including sanitary paper, printing and writing and packaging lines, among other products that use pulp as raw material.
“The successful completion of the Cerrado Project reflects the dedication and execution capability of each person involved in this grand and transformative project,” said Beto Abreu, newly-named CEO of Suzano.
“It also attests to the culture of excellence that permeates the entire organisation, masterfully led by [previous CEO] Walter Schalka during his 11-year tenure here.
“His vision and ambition have proven key in delivering a world-class mill within the planned budget. Crucially, this is also a project which has, at every stage, adhered to Suzano’s core focus on supporting sustainability and having a positive impact on local communities.”
In line with Suzano’s ESG Commitments to Renewing Life, the site has been purpose-built to meet global demand for sustainably produced eucalyptus-based products.
The mill will use renewable biomass to produce, on average, 180 MW of surplus green power a month. This energy, which will be directed toward the mill’s local suppliers as well as the national grid, is enough to power a city of up to two million inhabitants.
The proximity of the mill to Suzano’s eucalyptus farms means emissions and time from logging transportation will be significantly reduced. The structural distance from forest-to-mill is only 65km on average compared to Suzano’s structural average supply radius of 150km.
The plant will also be self-sufficient in the production of sulfuric acid and hydrogen peroxide.
Suzano said the investment is the largest investment in its 100-year history and has a series of operational and socio-environmental advances, with the plant laying the foundations for future growth opportunities such as the development of innovative new products from renewable raw materials.
Additionally, having created as many as 10,000 jobs during the construction phase, the operational mill will now provide 3,000 full-time jobs at the mill and the surrounding forestry and logistic operations.
Suzano said it was also making significant investments into improving local infrastructure and broadening access to quality education and healthcare.
Separately, earlier this month the Brazilian pulpmaker announced the acquisition of industrial assets from Pactiv Evergreen in the US. It said this transaction would expand the company’s operations in North America and marked its entrance into the consumer and food service packaging segments in the region.
Valued at US$110m (£85m), the deal includes two mills, in Pine Bluff, Arkansas and Waynesville, North Carolina, that manufacture liquid packaging board and cupstock.
Subject to final regulatory approval expected later this year, these assets will add approximately 420,000 metric tonnes annually of integrated paperboard to Suzano’s production capacity. Alongside the acquisition, Suzano signed a long-term supply deal with Pactiv Evergreen to provide liquid packaging board for its converting business.
Earlier this year Suzano also entered into a long-term partnership with B&C Group with respect to its majority stake in Vienna-listed Lenzing, which supplies cellulosic fibres for the textile and non-wovens industry.
Suzano recently terminated talks to buy American pulp and paper firm International Paper after failing to offer a high enough purchase price.
