Portucel to Build Wood Pellet Plant in U.S. South
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Portucel S.A., Portugal, reported that it will construct a wood pellet manufacturing facility in the U.S., in South Carolina, with an installed capacity of 460,000 tpy, at an estimated investment of $110 million (approximately EUR 89 million). Construction of the mill will start early this year and is expected to be completed in the third quarter of 2016.
Portucel has negotiated supply contracts with fixed price and tenure of 10 years, guaranteeing the sale of around 70% of the new facility's output. Located in Greenwood County, the mill is in an area with favorable competitive conditions in terms of wood availability and cost of energy, the company noted.
Portucel pointed out that the project represents an interesting investment opportunity, where Portucel can leverage its knowledge in wood converting and industrial processes, going into the bioenergy business, an industry where significant growth is expected, and which constitutes a renewable and sustainable alternative to the use of fossil fuels.
The location of this mill in the U.S. will also enable the internationalization and diversification of Portucel's industrial base, increasing significantly its presence in a country that is a world reference in forest based products, the company added.
