Daily Newsletter

23 July 2024

Daily Newsletter

23 July 2024

Suzano jumpstarts operations at new Brazilian $4.3bn paper mill

The facility reportedly marks one of Brazil’s largest ever private investment projects and the largest single pulp production line in the world.

Claire Jenns July 22 2024

Pulp producer Suzano has begun operations at its new paper mill in Ribas do Rio Pardo, Mato Grosso do Sul state, Brazil.

The state-of-the-art facility will have an annual production capacity of 2.55m tonnes of eucalyptus pulp, increasing Suzano’s production capacity by more than 20% to 13.5m tonnes per year.

Suzano can also produce 1.5m tonnes of paper per year, including packaging products that use pulp as raw material.

The project is the result of a total investment of 22.2bn reais ($4.3bn), of which 15.9bn reais were allocated for the construction of the plant and 6.3bn reais for initiatives such as the formation of the planting base and the pulp outbound logistics.

In line with Suzano’s ESG [environmental, social and governmental] commitments to renewing life, the site will use renewable biomass to produce 180 MW of surplus green power each month. This energy will be directed toward the mill’s local suppliers and the national grid.

The proximity of the mill to Suzano’s eucalyptus farms means emissions and time from logging transportation will be significantly reduced. The structural distance from forest to mill is only 65 kilometres on average, compared to Suzano’s structural average supply radius of 150 kilometres. The plant will also be self-sufficient in the production of sulphuric acid and hydrogen peroxide.

This is the largest investment in Suzano’s 100-year history. It has also created 3,000 full-time jobs at the mill and in aurrounding forestry and logistic operations.

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

Food packaging manufacturer Pactiv Evergreen recently entered a definitive agreement to divest its Pine Bluff, Arkansas, paper mill and Waynesville, North Carolina extrusion facility to Suzano for $110m in cash. 

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