Oct 27, 2023 - Suzano announced that its Board of Directors has approved an investment of one billion, one hundred seventy million reais (R$1,170 million) for two major projects in Brazil.
The first project involves the construction of a tissue paper mill with the capacity to produce 60,000 tons per year. The site will also have converting operations for the production of toilet paper and paper towels. The mill will be located in the municipality of Aracruz, in the state of Espírito Santo. The total investment is estimated at six hundred fifty million reais (R$650 million). Suzano expects the beginning of operations in the first quarter of 2026.
Suzano's intention to build the new tissue mill and converting operations was previously announced in December of 2022. Final investment in the project had been awaiting Board approval.
Suzano plans to fund the investment using its balance of ICMS tax credits in the state, which should result in an estimated net disbursement of approximately one hundred thirty million reais (R$130 million) in the project.
The second project involves the construction of a new biomass boiler at Suzano's pulp mill in Aracruz, which will replace the current boiler, at an estimated investment of five hundred twenty million reais (R$520 million).
The new biomass boiler should go operational in the fourth quarter of 2025.
Suzano noted that "the above-mentioned investments are aligned with its business strategy, since they represent progress in its market positioning in the consumer goods segment and the strengthening of its structural competitiveness in pulp production, while also attesting to the company's commitment to financial discipline as established in its indebtedness policy."
Suzano is the world's largest producer of hardwood pulp and the global leader in the innovation and production of renewable, bio-based materials for consumer and industrial use.
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