Fibria Invests CAD 5.3 Million for Minority Interest in CelluForce
CelluForce, whose current shareholders are Domtar, FPInnovations and Schlumberger, operates the world's largest CNC plant, capable of producing 300 tonnes per year of high quality material.
Nov. 18, 2016 - Brazilian market pulp producer Fibria Celulose S.A. announced that it has acquired a minority equity interest (8.3%) in CelluForce Inc. for CAD 5.3 million. Privately-owned CelluForce produces cellulose nanocrystals (“CNC”) on a commercial scale.
The deal includes a strategic alliance agreement under which Fibria has the right of exclusive supply in South America of CNC produced under CelluForce's technology. In addition, Fibria will be entitled to appoint one member for CelluForce's Board of Directors.
CNC, a biodegradable and renewable technology, have based solutions in numerous applications such as in the oil and gas field, in improving manufacturing processes of paper and non-wovens, in improving cement applications, in the development of electronic applications and in other segments like plastics and composites, paints and coatings, cosmetic ingredients, health care industry, and food and beverage industries.
Headquartered in Montreal, CelluForce, whose current shareholders are Domtar, FPInnovations and Schlumberger, operates the world's largest CNC plant, capable of producing 300 tonnes per year of high quality material, and has extensive patent portfolio that covers both the production and some of the applications of CNC and specialty cellulosic products.
The strategic alliance agreement also contains a provision that, in case CelluForce decides to establish a plant to produce CNC's in South America, Fibria will have the right of first refusal to participate in such plant by means of a joint venture with CelluForce or other structure to be agreed by the parties.
In a press release Fibria said, “This partnership with CelluForce goes along with our vision to leverage both our forestry technology expertise and our strategic market positioning to develop value-added alternatives that complement our global leadership and excellence in eucalyptus pulp production. We believe that CelluForce and its technology platform, together with Fibria's capabilities, might allow for the advance of the industrial applications and manufacturing of CNC in South America over the coming years.”
To learn more about CelluForce, please visit: www.celluforce.com.
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: www.fibria.com.br.
SOURCE: Fibria Celulose S.A.