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.
On Tuesday (6), the governor of Mato Grosso do Sul, Eduardo Riedel, made official an important economic advance for the state by signing, together with the president of Bracell, Praveen Singhavi, the term of concession of tax incentives that will enable the installation of a new dissolving cellulose factory in the territory of Mato Grosso do Sul. The project, which will have 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 plant, one of the world leaders in the production of specialty cellulose, reinforces the strategic positioning of Mato Grosso do Sul in the forestry and industrial sector. The plant is expected to generate thousands of direct and indirect jobs during the construction and operation phases, in addition to boosting tax collection and fostering the development of local production chains, such as transportation, logistics and services.
By signing the tax incentive agreement, the state government seeks to attract sustainable and long-term investments, promoting regional development with environmental responsibility. The dissolving pulp produced by Bracell is widely used in several segments, such as textiles, pharmaceuticals and food, which guarantees high demand in the national and international markets.
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New Bracell factory will have capacity for 2,8 million tons per year
The planned investment is R$16 billion, strengthening the eastern region of the state as one of the largest hubs in the sector in the country, being called the Vale da Celulose. The unit will be installed 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 contemplates two possibilities of activity, namely kraft pulp, focusing on paper and packaging, with a capacity of up to 2,8 million tons per year, or a mixed configuration that includes dissolving pulp, focusing on sustainable textile industry.
According to Jaime Verruck, Secretary of Environment, Development, Science, Technology and Innovation, in addition to generating thousands of jobs, this type of product opens doors to more sophisticated production chains and exports with greater added value. It is a fundamental step towards diversifying its industrial base.
During the meeting, progress in the environmental licensing process was also discussed, which is already being analyzed by the Mato Grosso do Sul Environmental Institute (Imasul), which received the company's Environmental Impact Study (EIA/RIMA). 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 guaranteeing a competitive environment that ensures the success of Bracell's new factory and brings opportunities to the entire state.
Project will receive one of the largest investments in the sector in Brazil
Bracell executive Praveen Singhavi expressed his gratitude for the institutional support, stating that this is an essential step for the company. The granting of tax benefits provides the security required to proceed with this transformative project.
Dissolving cellulose is widely used in the production of textile fibers such as modal, viscose and lyocell, and has a high commercial value because it requires purity and more rigorous 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 Mato Grosso do Sul's role as the second largest producer of roundwood for paper and pulp in Brazil, in addition to being responsible for 24% of Brazilian production.
Jaime Verruck highlighted that, over a decade ago, the state attracted R$125 billion in investments, R$65 billion of which were in this region alone. The sector generates thousands of jobs, with 26 thousand people employed directly and indirectly in the state, in addition to accounting for 17,8% of the industrial GDP.
The signing was attended by representatives of Bracell, deputies, mayors and state secretaries. Also present were the mayor of Bataguassu, Wanderleia Caravina, state deputy Pedro Caravina, and the CEO of Imasul, André Borges.
About Bracell Celulose
As one of the global leaders in the production of special dissolving pulp, Bracell's operations are based on sustainable eucalyptus cultivation and state-of-the-art factories. In the two states where it operates, it generates around 10 jobs, taking into account direct and outsourced workers on a permanent basis in industrial, logistics and forestry activities.
The company continually invests in technology and research to provide its customers 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 underpin its commitment to excellence, respect, teamwork, integrity and sustainability in all aspects of its operations.