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A Paper Excellence Has Billion-Dollar Investment Plans For A New Pulp Mill That Will Create Thousands Of Jobs. Mato Grosso Do Sul Is On The List Of Potential Locations For The Project.
A Paper Excellence recently announced its plans to invest around US$ 4 billion in a new pulp mill in the country. Behind the scenes, governors are negotiating proposals to “bring home” 2.5 million direct jobs and R$ 20 billion that will be generated by the pulp industry. The multinational confirmed that it is in talks with governors focused on assessing the potential of each region to host the industry.
Mato Grosso Do Sul May Host New Pulp Mill From Paper Excellence
Still in the early stages, the size of the industry and the estimated start date for construction have not yet been confirmed. Mato Grosso do Sul is on the list of states competing for the investment, which will bring thousands of jobs, but with the know-how of a company that has three industrial pulp units and one more already in development.
The Paper Excellence advisory states that the state is on the radar as one of the main pulp-producing hubs in the world.
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The three pulp-producing industrial plants in Mato Grosso do Sul are responsible for producing 4.95 million tons annually. This figure represents 25% of the country’s total pulp production. Such production has positioned the state as the largest exporter of pulp in Brazil, a status it has held since 2018. Of the total annual production, 28% is destined for international markets.
The data comes from the State Government, through the State Plan for Planted Forests. The state has 1.136 million hectares of planted forest, according to 2019 data. Of the total, 895 thousand hectares consist of eucalyptus over 6 years old, which is perfect for hosting Paper Excellence’s new pulp mill, generating thousands of jobs.
Company Commits to Mato Grosso Do Sul
Investments in a new pulp mill are always long-term and highly planned investments. The main reason is eucalyptus; it takes an average of six years for the first eucalyptus harvest, and in practice, this means that a lack of planted forests can make the investment unfeasible. The MS Government estimates that a pulp industry requires 250 thousand hectares of planted eucalyptus to begin production.
For years, Paper Excellence has been in a legal battle with J&F over control of Eldorado Brasil. The stalemate has stalled the expansion of the industrial plant located in Três Lagoas, which already has a project ready to be executed. Paper Excellence has committed to the state government to expand the Eldorado plant in Três Lagoas once the legal dispute is resolved.
The project for the second production line at Eldorado is finalized, licensed in environmental terms, and funded. The MS Government estimates that, in current values, the investment from Eldorado in expanding the unit would exceed R$ 10 billion. The unit has the capacity to produce 1.8 million tons of pulp annually.
About Paper Excellence
Paper Excellence began operations in 2006 with the purchase of the first pulp mill in Meadow Lake, Canada. Since then, the company has grown through strategic investments and purchases of paper and pulp mills in the Americas and Europe.
The company is the largest producer of long-fiber pulp in Canada. It produces 12.8 million tons of paper and pulp annually, and all of its forest operations are internationally certified.
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