Suzano Provides Investment Update on "Cerrado Project" in Brazil

The new pulp will have a nominal capacity of 2,550,000 (two million, five hundred and fifty thousand) tons of eucalyptus pulp production per year. Start-up is expected in the 2nd half of 2024.

Nov. 5, 2021 - Suzano on Oct. 28 announced that its Board of Directors have authorized the investments necessary for the execution of the "Cerrado Project", which consists of the construction of a new pulp production plant in the municipality of Ribas do Rio Pardo, in the state of Mato Grosso do Sul, Brazil.

The industrial capital investment remains estimated at R$14.7 (fourteen billion and seven hundred million Brazilian reais), with disbursement distributed between the years 2021 and 2024.

The new plant will have a nominal capacity of 2,550,000 (two million, five hundred and fifty thousand) tons of eucalyptus pulp production per year, thus exceeding the nominal annual capacity initially forecast of 2,300,000 (two million and three hundred thousand) tons.

In addition to the industrial capital investment of R$14.7 billion, Suzano estimates an additional amount of R$4.6 billion, which includes forestry, logistics, and chemical plant investments, among others, bringing the total expenditure to R$19.3 billion for the full execution of the Cerrado Project.

Suzano said the Cerrado Project represents an important development in the company's long-term strategy, contributing to the expansion of its structural competitiveness, meeting the growing demand for hardwood pulp, and to the company's evolution in sustainability.

Suzano expects start-up of the new pulp mill in the second semester of 2024.

Based in São Paulo, Brazil, Suzano (B3: SUZB3 | NYSE: SUZ) is one of the world's largest integrated pulp and paper producers. With ten mills and the joint operation Veracel, the company has an annual installed capacity of 10.9 million tons of market pulp and 1.4 million tons of paper. Its product portfolio includes coated and uncoated printing and writing paper, paperboard, tissue, market pulp and fluff pulp. To learn more, visit: www.suzano.com.br.

SOURCE: Suzano S.A.