Suzano to Invest R$1.66 Billion in New Tissue Paper Mill, Expand Fluff Pulp Capacity and New Biomass Boiler
26 Octubre 2023 - 8:50PM
Business Wire
Suzano, the world's largest producer of market pulp,
announces on October 26th a series of projects aimed at expanding
its installed production capacity and which will enhance its
operational efficiency. It will invest R$650 million in the
construction of a tissue paper mill in Espírito Santo, where it
will also invest R$520 million to replace a biomass boiler. The
company will also invest R$490 million to expand the supply of
fluff pulp in São Paulo.
The total investment of R$1.66 billion, announced during the
disclosure of the 3Q23 results, is aligned with Suzano's strategic
business avenues and underscores its commitment to constantly adapt
its operations to evolving demand in Brazil and the global
markets.
“Suzano's competitive edge in the production of sanitary papers
and fluff pulp, and the long-term growth of these markets driven by
changes in consumption habits, underpin the strategy of
strengthening our presence in these segments. We are the leaders in
the Brazilian tissue paper market and pioneers in the production of
fluff pulp from eucalyptus, which is why we must always be ready to
serve our customers,” says Walter Schalka, CEO of Suzano.
The new fluff- and tissue-based products will reach the market
by the end of 2025 and in 1Q26, respectively, and will add 340
thousand tons of fluff and 60 thousand tons of tissue to Suzano's
production capacity.
The third investment announced represents another phase in the
process of modernizing its Aracruz Unit. The new biomass boiler
will make the mill more efficient and stable, resulting in
environmental gains for the operation. The boiler is slated to go
operational in 4Q25.
The projects will be unveiled during Suzano Investor Day, to be
held on October 27th when the company also will detail the 3Q23
results, which benefited from further improvements in the cash cost
of production to R$861 per ton, at a time still marked by weak
global pulp prices. Suzano reported adjusted EBITDA of R$3.7
billion and operating cash flow of R$1.9 billion. Pulp sales
totaled 2.5 million tons and paper sales reached 331 thousand tons.
Net revenue was R$8.9 billion. The company recorded net loss of R$
729 million, impacted by the weakening of BRL during the quarter,
which affected the portion of debt in USD and derivatives.
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version on businesswire.com: https://www.businesswire.com/news/home/20231026224671/en/
Hawthorn Advisors Jamie Plotnek suzano@hawthornadvisors.com
Suzano (NYSE:SUZ)
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