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Fibria to Increase Production Capacity at Horizonte 2 Pulp Mill Project in Brazil

Fibria Horizonte 2 pulp Mill project Fibria has decided to increase the production capacity of its Horizonte 2 pulp mill project by 200,000 tons per year (tpy) — from 1.75 million tpy to 1.95 million tpy

May 31, 2016 – Brazilian market pulp producer Fibria said that it will increase the production capacity of its new pulp mill in Tręs Lagoas, Mato Grosso do Sul, Brazil (Horizonte 2 Project) by 200,000 tons per year (tpy) — from 1.75 million tpy to 1.95 million tpy.

The new expansion in the project does not change the total planned investment of R$8.7 billion, equivalent to around US$2.4 billion, Fibria noted.

The announcement of the new production capacity comes at a time when the company celebrates one year of the Horizonte 2 Project, 32.5% of which has already been completed.

Combining the new line with the plant currently in operation, the Tręs Lagoas unit will expand its production capacity by 150%, exceeding the total capacity of 3.2 million tons of pulp/year. With this, Fibria's total production capacity, considering all its units in Brazil, will increase from the current 5.3 million tons of pulp/year to 7.25 million tons of pulp/year.

Forest Base
Fibria has been investing in the development of its forest base in the region to supply the new production line. The wood supply required to operate Fibria's new plant will come from forests grown in Mato Grosso do Sul. A total of 187,000 hectares of forests planted on own, leased and partners' areas will be used.

Including the 120,000 hectares used to supply the current unit, the forest base that will supply the Tręs Lagoas unit will span 307,000 hectares. The average radius of the forests to the company's two production lines will be less than 100 kilometers, one of the most competitive in the market.

Modern Environmental Design
Fibria's Tręs Lagoas unit follows the most modern concepts in eco-design, with cleaner and more efficient production processes.

In addition, all the energy consumed is generated by the unit itself using biomass in the form of eucalyptus bark and the liquid biomass resulting from the industrial process. With the increase in production capacity, the industrial unit will generate and consume its own energy and will still have a surplus of 130 MWH, which will positively contribute to Brazil's energy grid and benefit the energy matrix by using renewable sources.

"The expansion of production capacity of the Horizonte 2 Project shows that the fundamentals that guided the expansion of our Tręs Lagoas unit are solid and supported by a financial structure that maximizes gains for Fibria," said Fibria CEO Marcelo Castelli. "We are announcing a bigger capacity without having to invest more. We are proud to see this work in progress, bringing jobs, better quality of life and development to Tręs Lagoas, Mato Grosso do Sul and Brazil.”

Fibria is the world leader in the production of eucalyptus pulp with the capacity to produce 5.3 million tons per year. To learn more, please visit:

SOURCE: Fibria