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Suzano to acquire key equipment for its greenfield pulp mill from Metso and Siemens

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Suzano to acquire key equipment for its greenfield pulp mill from Metso and Siemens

April 18, 2011 - 02:02

Sao Paulo, Brazil, April 18, 2011 (Press Release) -Further to the Notice to the Market released on February 28, 2011, announces to shareholders and the market that it has entered into agreements with Metso and Siemens for the acquisition of key equipment for construction of the industrial unit in Maranhão with annual capacity of 1.5 million tons. These agreements will enable the plant's start-up to be advanced by six months, being now expected for April 30, 2013.

The acquisition of the key equipment with Metso will basically cover the following areas: (i) Wood Handling; (ii) Cooking and Washing; (iii) Fiber Line; (iv) 2 Driers, Bailing and Expedition; (v) Biomass and Recovery Boilers; (vi) Causticizing and Lime Kiln; (vii) Evaporation; and (viii) Integrated Automation Solution (DCS - Distributed Control System) for all process areas. The value of the order is not disclosed, but is conforming to the typical value for contracts falling within this scope that range between US$ 1.0-1.2 billion.

The agreement with Siemens comprises the acquisition of 2 turbo generators, which will furnish the mill's energy needs, as well as provide the unit with 100 MW energy surplus for sale. The value of the agreement is of approximately US$ 40-50 million.

More information about the project will be released during 2011 first quarter financial results conference call scheduled for May 12, 2011.