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Suzano to invest $2.8 billion in the first fossil-free pulp plant in Brazil

SÃO PAULO, 12 May, 2021 – Suzano, [the world's leading] eucalyptus pulp producer and one of Latin America's largest companies, announces the construction of a new multi-billion dollar pulp plant with annual production capacity of 2.3 million tons. The $2.8 billion project is one of the largest private-sector investments currently under development in Brazil.

The eucalyptus pulp plant will be built in the municipality of Ribas do Rio Pardo, in Mato Grosso do Sul state of Brazil, with production scheduled to commence in Q1 2024. The initiative, called the “Cerrado Project”, will increase Suzano’s current pulp production capacity, of 10.9 million tons, by approximately 20%.

Walter Schalka, CEO of Suzano said, “The new plant represents an important milestone in our long-term strategy. Through our products Suzano already reaches the lives of over two billion people globally and we are committed to meeting the world’s growing demand for sustainable consumer products developed from renewable materials.

“This project will also make an important contribution to income generation and job creation in Brazil, while increasing our carbon capture capacity through the expansion of our forest base." 

The project will also help mitigate against the effects of climate change by increasing the supply of renewable energy in Brazil. The plant will have the capacity to sell approximately 180 MW of surplus energy to Brazil’s power grid and is set to become Brazil’s first fossil-fuel free pulp plant, representing a new milestone in eco-efficiency and sustainability for the industry and region.

Once completed, the project will be the world’s largest plant with a single eucalyptus pulp production line. It will create up to 10,000 direct jobs during construction and 3,000 new employment opportunities once operational, further supporting the development of the economic value chain in the Mato Grosso do Sul state of Brazil.

The project will be majority funded through Suzano’s cashflow generation, and additional financing options are being considered.

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2023-11-29 15:28:53