Bracell to Invest R$ 7 Billion and Create 7,500 Jobs at Factory in São Paulo

Officially Launched by the Company in April, the “Star Project” Will Raise the Factory’s Production from 250,000 Tons to 1.5 Million Tons Per Year

The Bracell Group, which is part of RGE, based in Singapore, presented this afternoon, 29, details of the R$ 7 billion project to expand the production of soluble cellulose currently underway in the interior of São Paulo. The presentation of the expansion project in the city of Lençóis Paulista was delivered to the governor of São Paulo, João Doria, with journalists at an event held at the Palácio dos Bandeirantes.

In January, discussions about the investment were advanced when Governor Doria met with Anderson Tanoto, global president of RGE, in Davos, Switzerland, during the World Economic Forum.

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With an expected completion deadline by the end of 2021, the expansion work represents the largest private investment in the State of São Paulo in the last 20 years. In total, approximately R$ 7 billion will be invested. The epicenter of the investment will be concentrated in the municipalities of Lençóis Paulista and Macatuba, but it will also create job opportunities in nearby cities: Agudos, Areiópolis, Bauru, Pederneiras, São Manuel, Barra Bonita, Jaú, and Igaraçu do Tietê.

In a two-year period, the Bracell expansion project in São Paulo will employ about 7,500 workers at the peak of the work, with an average of approximately 3,000 workers. After completion, the operational phase will employ about 2,100 direct workers and 1,900 outsourced workers permanently at the factory and in forestry activities.

“For this project to come to life, we want to work with the best talent and technologies available in the world, and fortunately, we are confident that this talent is based here in Brazil”, says Pedro Wilson Stefanini, director of Bracell São Paulo. The executive also emphasizes that opportunities will occur not only in the manufacturing area but also in forestry activities present in about 50 municipalities in the state of São Paulo.

Present in Brazil for over 15 years with the operation of Bahia Specialty Cellulose in Camaçari (BA), Bracell began the ambitious expansion project by acquiring Lwarcel Celulose in August 2018. Located in Lençóis Paulista (SP), the factory with a current production capacity of 250,000 tons/year began to be expanded in April 2019. At the end of the work, the unit will have a production capacity of 1.5 million tons/year of soluble cellulose.

“Our ambition is to be not only one of the largest soluble cellulose operations in the world but also one of the most responsible companies in social and environmental aspects. In addition to creating jobs and career opportunities for thousands of people in Brazil, we will set the highest standards for the sustainable use of renewable resources”, comments Carlos Pastrana, director of the expansion project.

When the expansion project is completed, Bracell’s total production capacity, considering the operations in Bahia and São Paulo, will increase to approximately 2 million tons of soluble cellulose per year.

Soluble cellulose is one of the main ingredients used to create a wide range of products, from textiles, baby wipes, and eyeglass frames to sausage packaging and pharmaceuticals, as well as industrial products such as high-performance tire cables.

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