Suzano is currently working on the world’s largest single-line pulp mill in Cerrado, which will add 2.55 million tonnes of pulp to the company’s current installed capacity of 10.9 million tonnes of pulp per year. The project involves a total investment of USD 4.38 billion and will become operational by June 2024.
Apr 8, 2024
Suzano, the world’s largest pulp producer, has announced its financial statements for the full fiscal year of 2023. As per the report, Suzano invested over USD 3.67 billion in 2023, registering an increase of 14 percent, as compared to FY22.
The company said it was currently finalising the construction of the Cerrado Project, the world’s largest single-line pulp mill, and has expanded its forestry estate, safeguarding supply and enhancing future competitiveness.
The project will be operational by June 2024 and involves a total investment of USD 4.38 billion. The new mill will add 2.55 million tonnes of pulp to the company’s current installed capacity of 10.9 million tonnes of pulp per year.
Other major investments in 2023 include the acquisition of Kimberly-Clark’s tissue assets in Brazil, the expansion of its forests and landholdings base, and the modernization of the Jacareí and Aracruz units & port terminals.
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The company also announced investments to build a tissue paper mill in Aracruz and a project to quadruple the fluff pulp production capacity in Limeira mill. Fluff pulp is the raw material used for manufacturing personal hygiene products, such as baby and adult diapers and sanitary napkins.
Walter Schalka, CEO of Suzano, said, “Our investment cycle, including the highest annual investment ever, in 2023, represents the largest in our centennial history with over USD 9.87 billion spent between 2019 and 2023. A further USD 3.26 billion will be invested in 2024.
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“In parallel, we have maintained strong cash generation and kept net debt at a sustainable level of USD 11.5 billion, reflecting our commitment to strategic growth and financial discipline. We faced a challenging scenario in 2023 and our results demonstrate the company’s resilience to generate value for our stakeholders. With the start-up of the Cerrado Project, our structural competitiveness will be more robust in the coming years,” he added.
As per the report, Suzano’s net revenues in FY23 stood at USD 7.85 billion, while its FY23 Adjusted EBITDA was USD 3.61 billion. The company generated operating cash worth USD 2.29 billion. Suzano’s pulp sales totalled 10.2 million tonnes, while its paper sales totalled 1.3 million tonnes.
