Suzano Plans to Build 60,000 Mtpy Tissue Paper Mill in Aracruz, Brazil

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According to Fastmarkets RISI, Brazilian pulp and paper producer Suzano has informed the market of its plans to build a tissue paper mill and conversion plant in the city of Aracruz, in Brazil's southeastern Espirito Santo state.

The company estimates an investment of Real 600 million ($114 million) in the project, which would add 60,000 tons per year of tissue production capacity. The new unit’s effective implementation is subject to approval by the company’s internal governance bodies, including the board of directors, as well as the closing of contracts with suppliers, Suzano said. Construction would take approximately two years, the company added.

Suzano plans to fund the investment using its balance of ICMS tax credits in the state, which will depend on the presentation of a specific project and authorization by applicable authorities.

“The construction of the new plant in Aracruz is aligned with Suzano’s strategy to advance in the links of the value chain, always with a competitive advantage such as in the country’s growing market for sanitary paper products,” the company said in a statement.

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