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New Bracell Factory with Billion-Dollar Investment: New Unit Will Have Capacity for 2.8 Million Tons of Cellulose and Promises to Employ Thousands of People.
This Tuesday (6), the governor of Mato Grosso do Sul, Eduardo Riedel, officiated an important economic advancement for the state by signing, along with the president of Bracell, Praveen Singhavi, the concession agreement for tax incentives that enables the installation of a new dissolving pulp factory in the southern Mato Grosso territory. The project, which will involve a billion-dollar investment, will be built in the municipality of Inocência and represents a milestone in the industrial expansion of the region, with the potential to transform the local economy in the coming years.
The new Bracell factory, one of the global leaders in the production of specialty cellulose, reinforces the strategic positioning of Mato Grosso do Sul in the forestry and industrial sectors. The plant is expected to generate thousands of direct and indirect jobs during the construction and operation phases, as well as boost tax revenue and promote the development of local productive chains, such as transportation, logistics, and services.
With the signing of the tax incentive agreement, the state government aims to attract sustainable long-term investments, promoting regional development with environmental responsibility. The dissolving pulp produced by Bracell is widely used in various segments such as textiles, pharmaceuticals, and food, which ensures high demand in both national and international markets.
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New Bracell Factory Will Have Capacity for 2.8 Million Tons Per Year
The expected investment is R$ 16 billion, strengthening the eastern region of the state as one of the largest hubs in the sector in the country, referred to as the Cellulose Valley. The unit will be established in the city of Bataguassu and is part of a state strategy for economic diversification and expansion of high value-added production chains.
The project includes two potential activity options: kraft cellulose, focusing on paper and packaging, with a capacity of up to 2.8 million tons annually, or a mixed configuration that includes dissolving pulp, focusing on the sustainable textile industry.
According to Jaime Verruck, Secretary of the Environment, Development, Science, Technology, and Innovation, in addition to generating thousands of jobs, this type of product opens doors for more sophisticated productive chains and exports with higher added value. It is a fundamental step toward diversifying the industrial base.
During the meeting, advancements in the environmental licensing process were also discussed, which are already under analysis at the Mato Grosso do Sul Environmental Institute (Imasul), which received the Environmental Impact Study (EIA/RIMA) from the company. The expectation is that the preliminary license will be issued by December of this year.
According to Governor Eduardo Riedel, the government is committed to the growth of the state and to ensuring a competitive environment that guarantees the success of the new Bracell factory and brings opportunities for the entire state.
Project Will Receive One of the Largest Investments in the Sector in Brazil
Bracell executive Praveen Singhavi expressed gratitude for the institutional support, stating that this is an essential step for the company. The granting of tax benefits ensures the security required to proceed with this transformative project.
Dissolving pulp is widely used in the production of textile fibers such as modal, viscose, and lyocell and carries a high commercial value due to the need for purity and stricter technical control, details that expand export potential and attract processing industries.
The new Bracell factory will be one of the largest private investments in the sector in the country, consolidating the role of Mato Grosso do Sul as the second largest producer of log wood for paper and cellulose in Brazil, also responsible for 24% of national production.
Jaime Verruck noted that, for more than a decade, the state has attracted R$ 125 billion in investments, with R$ 65 billion in this region alone. The sector generates thousands of jobs, with 26,000 people employed directly and indirectly in the state, and accounts for 17.8% of the industrial GDP.
The signing event was attended by representatives from Bracell, deputies, mayors, and state secretaries. The mayor of Bataguassu, Wanderleia Caravina, state deputy Pedro Caravina, and the director-president of Imasul, André Borges, also attended.
About Bracell Celulose
As one of the global leaders in the production of specialty dissolving pulp, Bracell bases its operations on sustainable eucalyptus cultivation and state-of-the-art factories. In the two states where it operates, it generates about 10,000 jobs, considering both permanent direct and outsourced workers in industrial, logistics, and forestry activities.
The company continuously invests in technology and research to provide its clients with high-quality products, delivered on time and at competitive prices, always focusing on sustainability and respect for communities at all stages of its operations.
Its purpose, vision, and core values support its commitment to excellence, respect, teamwork, integrity, and sustainability in all aspects of its operations.
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