Brazil's Fibria to Invest $2.4 Billion in Três Lagoas Mill
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According to a Reuters news article this past week, management at Fibria SA, Sao Paulo, Brazil, the world's largest eucalyptus pulp producer, presented a plan to its board of directors for investing 8 billion reais ($2.4 billion) in the Três Lagoas mill in Brazil. The plan was presented to board members ahead of the expected June deadline, the Valor Econômico newspaper reported.
The massive expansion plan, which will allow Fibria to double capacity at Três Lagoas, was expected to be presented to the board around June, Valor said, without saying how it obtained the information. Board approval to the program is necessary to put the plan in motion, the paper said.
The move allows Fibria to implement a second line at Três Lagoas by 2017 and take advantage of an expected increase in demand for pulp in Asia and some emerging markets nations. According to Valor, rival El Dorado also has plans to increase capacity at a mill it owns in Três Lagoas, which is located in the country's midwestern region.
