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Fibria Moving Ahead with Tres Lagoas Pulp Project

August 16, 2010 - Fibria said that it has resumed studies on the procurement of forestlands that will be used to supply the raw material for company's planned new pulp production line to be constructed next to its Tres Lagoas mill (Tres Lagoas I) in Mato Grosso do Sul State, Brazil.

Fibria expects start up of the new pulp line (Tres Lagoas II) in the timeframe of 2014 - 2016, depending on market conditions.

The new pulp line is designed to have a nominal capacity of 1.5 million tons per year, with the possibility of increasing the capacity to 1.75 million tpy.

The project calls for a total investment of approximately R$5.8 billion, Fibria said

Social environmental licensing process has already begun, the company added.

A total of 150,000 hectares of planted forests will be needed, made up by 50% of own forest and the remaining 50% from third parties through leasing and partnership, Fibria said.

The total planned investment in the forest base is R$1.8 billion.

The company has a 30,000-hectare surplus of planted land from the Tres Lagoas I operation and is concluding the lease of 45,000 hectares in 2010. The remaining 75,000 hectares will be guaranteed through the purchase and lease of lands in the next years, Fibria said.

Fibria's Tres Lagoas mill, which began operation in March 2009, has a pulp production capacity of 1.3 million tpy.

SOURCE: Fibria




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