Bracell Confirms New Tissue Plant Integrated to Lençóis Paulista Pulp Lines

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According to Fastmarkets RISI, Brazilian pulp producer Bracell will build a tissue factory at its Lençóis Paulista unit in São Paulo state, where it started up the Star pulp project a few months ago, the company said on Friday February 25.

Last September, Bracell started two new flexible kraft and dissolving pulp (DP) pulp lines at the site, expanding capacity to 3 million tonnes per year of kraft pulp, or 1.5 million tpy of DP, from 250,000 tpy of bleached eucalyptus kraft (BEK) pulp.

“The [tissue] project is expected to generate more than 2,000 jobs during its construction phase and approximately 300 permanent jobs after its completion,” Bracell said.

“The tissue production capacity will be defined shortly, after the engineering phases have been completed,” it added.

The investment should consume only a small part of the company’s pulp production capacity, it noted, while reiterating that it remains “fully committed to serving our customers as a long-term and reliable supplier of pulp to the market.”

Brazilian sources in the pulp market previously told Fastmarkets that Bracell would have to sell a large volume of pulp in the domestic market to take advantage of a tax return offered by the Brazilian government.

For this reason, owning a paper operation in Brazil would make a lot of sense for the company, because it could integrate part of its capacity and take full advantage of fiscal benefits.

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