The state-of-the-art facility, started at Ribas do Rio Pardo in Mato Grosso do Sul state, has an annual production capacity of 2.55 million tons of eucalyptus pulp. It is one of Brazil’s largest ever private investment projects worth around USD 4 billion.
Jul 25, 2024
Suzano, the world’s largest market pulp producer, has announced the successful operational startup of its new mill, the largest single pulp production line in the world, at Ribas do Rio Pardo in Mato Grosso do Sul state.
As per a release issued by Suzano, this marks the completion of one of the largest ever private investment projects in Brazil. The state-of-the-art facility will have an annual production capacity of 2.55 million tons of eucalyptus pulp, increasing Suzano’s production capacity by more than 20 percent to 13.5 million TPA.
It will also be one of the few pulp mills in the world to run without fossil fuels, based on a raw material of 100 percent planted trees. It will be energy self-sufficient, producing surplus green power for its local suppliers and the national grid.
The project entails investment of approximately USD 4 billion, of which around USD 3 billion was allocated for the construction of the plant and approximately USD 1 billion was earmarked for initiatives such as the formation of the planting base and pulp outbound logistics. Suzano also has the capacity to produce 1.5 million TPA of paper, including sanitary paper, printing & writing and packaging lines, among other products that use pulp as raw material.
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“The successful completion of the Cerrado Project reflects the dedication and execution capability of each person involved in this grand and transformative project. It also attests to the culture of excellence that permeates the entire organization, masterfully led by Walter Schalka during his 11-year tenure here. Crucially, this is also a project which has, at every stage, adhered to Suzano’s core focus on supporting sustainability and having a positive impact on local communities,” says Mr. Beto Abreu, newly-named CEO of Suzano. His vision and ambition have proven key in delivering a world-class mill within the planned budget.
In line with Suzano’s ESG commitments to renewing life, the site has been purpose-built to meet global demand for sustainably produced eucalyptus-based products. The mill will use renewable biomass to produce, on average, 180 MW of surplus green power a month. This energy, which will be directed toward the mill’s local suppliers as well as the national grid, is enough to power a city of up to 2 million inhabitants. 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 km on average compared to Suzano’s structural average supply radius of 150 km. The plant will also be self-sufficient in the production of sulfuric acid and hydrogen peroxide.
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This is the largest investment in Suzano’s 100-year history and has a series of operational and socio-environmental advances. “The new plant will lay the foundations for future growth opportunities, such as the development of innovative new products from renewable raw material, and strengthen Suzano’s irreplicable business model”, says Mr. Walter Schalka, who recently stepped down as CEO of Suzano after an 11-year journey in charge of the company. The completed project will also have a major impact on both the local community and wider regional economy. Having created as many as 10,000 jobs during the construction phase, the operational mill will now provide 3,000 full-time jobs at the mill and the surrounding forestry and logistic operations.
In tandem with this, Suzano is making significant investments into improving local infrastructure and broadening access to quality education and healthcare. The company delivered over USD 53 million in construction and equipment in the municipality, in building new housing units and a new medical center and in voluntary social initiatives focused on sustainable development, income generation and reduction of poverty indicators in the region. These investments were distributed in seven axes of action: education, income generation, rights protection, infrastructure, health, relationship with communities and work, it added.
