Suzano will invest US$2.8 billion to build the first fossil-free pulp mill in Brazil

On May 12, 2021, Sao Paulo-the world’s leading eucalyptus pulp producer and one of the largest companies in Latin America, Sukarno announced the construction of a new multi-billion dollar pulp mill with an annual production capacity of 2.3 million tons. This $2.8 billion project is one of the largest private sector investments currently under development in Brazil.

The eucalyptus pulp mill will be built in Ribas do Rio Pardo, in the state of Mato Grosso do Sul, Brazil, and production is scheduled to start in Q1 in 2024. The plan called “Cerrado Project” will increase Sukarno’s existing 10.9 million tons of pulp production capacity by approximately 20%.

Sukarno CEO Walter Ska said: “The new factory represents an important milestone in our long-term strategy. Through our products, Suzano has benefited the lives of more than 2 billion people worldwide. We are committed to satisfying the world’s The growing demand for sustainable consumer products for material development.

“The project will also make an important contribution to Brazil’s income generation and job creation, and at the same time increase our carbon capture capabilities by expanding our forest base.”

The project will also help mitigate the effects of climate change by increasing the supply of renewable energy in Brazil. The plant will be able to sell approximately 180 MW of super energy to the Brazilian power grid and will become the first pulp mill in Brazil that does not contain fossil fuels. This marks a new development in the industry and region in terms of eco-efficiency and sustainability. milestone.

Once completed, the project will be the world’s largest factory with only one eucalyptus pulp production line. It will create as many as 10,000 direct jobs during the construction period and 3,000 new jobs after operation, further supporting the development of the economic value chain of the state of Mato Grosso do Sul, Brazil.

The project will obtain most of the funds through Suzano’s cash flow generation, and other financing options are being considered.