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In Ribas do Rio Pardo, In Mato Grosso do Sul, the New Factory Will Be the Largest Single-Line Pulp Production Facility in the World. Many Jobs Will Be Created
Yesterday, May 13, Suzano announced that it will build a new factory in Ribas do Rio Pardo, located 100 km from the capital of Mato Grosso do Sul. The company, considered a global reference in the manufacturing of bioproducts developed from eucalyptus cultivation, will invest around R$ 14.7 billion in the project, potentially generating many jobs in the region during construction. With this investment, the venture will be one of the largest private investments underway in Brazil. See also: Suzano’s New Factory Opens in Espírito Santo and the Company Announces Investments of R$ 782 Million in the State
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Suzano’s New Factory in the State of Mato Grosso do Sul
Suzano’s new unit, named “Projeto Cerrado” in reference to its geographic location in Mato Grosso do Sul, will increase the current pulp production capacity of the company by approximately 20%. Additionally, the factory in Ribas do Rio Pardo will be the company’s most competitive facility.
Walter Schalka, CEO of Suzano, states that this new factory will represent an important advancement in the company’s long-term strategy. He also emphasizes that the new unit in the state of Mato Grosso do Sul will make a significant contribution to income and job generation in the region, as well as in carbon capture capacity, stemming from the expansion of the forest base.
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Suzano’s Venture in Mato Grosso do Sul Will Contribute to Carbon Capture
The new unit will help mitigate the effects of climate change related to the increase in renewable energy generation in the country, with the capacity to export approximately 180 average MW to Brazil’s electricity system. This new Suzano project is set to be the first unit in the paper and pulp sector in the country considered fossil fuel-free, marking a new milestone for the company in eco-efficiency, highlighting its commitment to society and the planet.
The realization of the project, which will have the capacity to produce 2.3 million tons of eucalyptus pulp annually, will result in the largest single-line pulp factory in the world, but still depends on preceding conditions, such as compliance with the parameters established in Suzano’s Financial Policy and negotiations with suppliers. The Projeto Cerrado will primarily rely on the company’s cash generation, which may be complemented by financing, provided the terms are attractive in terms of cost and duration.
Job and Income Generation with the New Factory in Mato Grosso do Sul
During the construction of the new factory in Ribas do Rio Pardo, around 10,000 direct jobs are expected to be generated at the peak of the work, in addition to thousands of indirect jobs throughout the region of Mato Grosso do Sul. Once completed, the new factory could generate 3,000 direct jobs among its own employees and third parties.
Reinaldo Azambuja, the governor of Mato Grosso do Sul, states that the government has prepared Mato Grosso do Sul to diversify its economy and become a new hub of business and investment opportunities. The governor mentions that he has been investing in infrastructure, thereby ensuring competitiveness for commodities. In addition to the state’s fiscal incentive program, the state government has generated thousands of jobs and attracted more industries, maintaining uniform economic growth throughout the State.
According to Azambuja, Suzano’s announcement about the construction of the factory in Ribas do Rio Pardo demonstrates that the company is on the right track, transforming Mato Grosso do Sul into a state of opportunities for all, with sustainability and quality of life for the population.
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