Suzano starts operations at US$4.3B paper mill in Brazil

BRAZIL – Pulp producer Suzano has commenced operations at its new state-of-the-art paper mill in Ribas do Rio Pardo, Mato Grosso do Sul state, Brazil.

This facility boasts an annual production capacity of 2.55 million tonnes of eucalyptus pulp, increasing Suzano’s total production capacity by more than 20% to 13.5 million tonnes per year.

Additionally, Suzano can produce 1.5 million tonnes of paper annually, including packaging products that utilize pulp as a raw material.

The project represents a total investment of 22.2 billion reais (US$4.3 billion), with 15.9 billion reais (US$2.83 billion) allocated for the plant’s construction and 6.3 billion reais (US$1.12 billion) dedicated to initiatives such as forming the planting base and establishing pulp outbound logistics.

Aligning with Suzano’s ESG (environmental, social, and governance) commitments to sustainability, the site will use renewable biomass to generate 180 MW of surplus green power each month. This energy will be supplied to the mill’s local suppliers and the national grid.

The mill’s proximity to Suzano’s eucalyptus farms will significantly reduce emissions and transportation time. The average structural distance from forest to mill is only 65 kilometers, compared to the company’s typical supply radius of 150 kilometers.

The plant will also be self-sufficient in producing sulphuric acid and hydrogen peroxide.

Recently appointed CEO of Suzano, Beto Abreu, emphasized, “This project has, at every stage, adhered to Suzano’s core focus on supporting sustainability and having a positive impact on local communities.”

In addition to its developments in Brazil, Suzano recently 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, valued at US$110 million, 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.

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