Suzano to invest R$933.4 million in three projects in Espírito Santo state including tissue converting

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Suzano to invest R$933.4 million in three projects in Espírito Santo state including tissue converting

December 19, 2019 - 13:39
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ARACRUZ, Brazil, Dec. 19, 2019 (Business Wire) -Suzanoannounced investments of R$933.4 million in three projects in Espírito Santo state. The company’s plans include the construction of a tissue paper conversion unit, retrofit work in the unit located in Aracruz, as well as expansion of Suzano’s forest base in the state.

The three projects should create nearly 900 jobs during the construction phase, which will be possible through the use of ICMS tax credits accrued by Suzano due to its essentially exporting activities in the state. With these investments, Suzano aims to strengthen its relationship with Espírito Santo and maximize its contribution to the region’s development.

The paper conversion unit will require investments of R$130 million. This specific project will create around 300 direct and indirect jobs during the construction phase and 200 direct and indirect jobs when the unit is operational, besides stimulating chain of raw material suppliers in the region. Production should start in the fourth quarter of 2020.

The plant’s annual capacity will be 30,000 tons of tissue converted to finished products. The unit will produce two-ply or three-ply toilet paper for the brands Mimmo, the market leader in Espírito Santo, and Max Pure. The raw material for this unit will be produced by the Mucuri Unit (Bahia state).

With investments estimated at R$272.4 million, the retrofit work at the Aracruz Unit will increase the plant´s energy efficiency. The project will be executed in 24 months and approximately 300 jobs will be created during this period. With this investment, the plant will be more efficient, modern and competitive and with lower environmental impact.

Suzano also announced the expansion of its forest base in the state, which is strategic for the company. The purpose is to reduce the average supply radius between the forest plantations and the plant, which will bring environmental benefits caused by fewer vehicles carrying wood over long distances.

The company plans to invest R$531 million in this project via acquisition or lease of rural areas, plantations, trellis systems and crop treatment. The initiative should create 300 direct and indirect jobs in the first two years after the licenses are obtained and will also stimulate the supplier chain in the region and tax collections.

The investments announced are already included in Suzano’s investment plan of R$4.4 billion for 2020, announced by the company last week.