Suzano secures deal to acquire Packaging Mills from Pactiv Evergreen

USA – Suzano, the world’s largest pulp producer, has announced the acquisition of industrial assets from Pactiv Evergreen in the United States, marking its entry into North America’s consumer and food service packaging segments.

This strategic expansion is valued at US$110 million and includes two mills: Pine Bluff, Arkansas, and Waynesville, North Carolina.

The Pine Bluff mill produces liquid packaging board and cup stock used to manufacture fresh beverage cartons, paper cups, and other fiber-based food and beverage packaging.

The Waynesville mill adds incremental extrusion capacity for the board produced at Pine Bluff. Once regulatory approval is secured, expected later this year, these assets will add approximately 420,000 metric tonnes annually of integrated paperboard to Suzano’s production capacity.

In conjunction with the acquisition, Suzano has signed a long-term supply agreement with Pactiv Evergreen to provide liquid packaging board for its converting business.

Suzano, currently the largest supplier of hardwood market pulp in North America, has offices in Fort Lauderdale, Florida, and a research and innovation campus near Vancouver, Canada.

Already a major producer of materials for food and beverage packaging in Latin America, Suzano will collaborate with Pactiv Evergreen’s team, leveraging their operational knowledge and experience in the paperboard business.

This partnership aims to enhance the structural competitiveness and profitability of the acquired assets, which are already well-positioned on the North American packaging industry’s cost curve.

The assets benefit from the high availability of wood in the region, low energy costs, and excellent access to railways, ports, and highways.

Last month, Suzano announced plans to buy a 15% stake in Lenzing, a global producer of wood-based packaging materials, for €230 million (US$246.86 million).

This move is expected to strengthen both companies’ market positions. Suzano will acquire the stake from B&C, Lenzing’s current majority shareholder.

Suzano and B&C plan to form a long-term syndicate with a majority stake in Lenzing, a partnership with significant potential. Under the agreement, Suzano can acquire an additional 15% stake from B&C by 2028, further solidifying their collaboration.

Lenzing, renowned for producing textiles and non-wovens, also develops fiber-based packaging materials that are naturally durable and biodegradable.

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