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Suzano Pulp and Paper said that it will invest around R$720 million by year-end in a set of projects intended to diversify its operations in Brazil through higher-value products, boost structural competitiveness, cut costs and enhance environmental initiatives.
In a press release Suzano said, “These projects are included in our investment plan for 2017, which is estimated at R$1.83 billion and also includes R$1.11 billion in maintenance initiatives, including in the forestry and industrial operations. The maintenance investments aim to ensure the good operating conditions of our assets, as well as to cultivate and preserve green areas.
“The production of tissue and lignin, whose startup is slated for this year, represents another step in our strategy to diversify the returns on our asset base, this will open up new avenues of adjacent businesses by capturing efficiency and profitability gains in our operations.”
Suzano explained that a number of the projects are designed to improve the company’s competitiveness. For example, once the debottlenecking of the Imperatriz Unit is complete, the annual capacity of local production will expand from 1.5 million to 1.65 million tons of pulp.
In addition, upon the completion of the project to modernize and expand the wastewater treatment plant at the Mucuri Unit, the quality of the water discharged into the Mucuri River will be greatly improved.
Based in Brazil, the company is the second-largest producer of eucalyptus pulp in the world.