With an estimate of generating thousands of direct jobs, Paper Excellence announces an investment of US$ 4 billion in a new pulp mill in Brazil

Paper Excellence plans to invest billions in a new pulp mill that will create thousands of jobs. Mato Grosso do Sul is on the list of those that can receive the development.

A Paper excellence recently announced its plans to invest close to $4 billion in a new pulp mill in the country. Backstage, governors articulate proposals to “take home” 2,5 million direct jobs and BRL 20 billion, which will be generated by the pulp industry. The multinational confirmed that it maintains conversations with governors with a focus on evaluating the potential of each region to receive the industry.

Mato Grosso do Sul may receive Paper Excellence's new pulp mill

Still in its initial phase, the size of the industry has not yet been confirmed nor an estimate of when the works will begin. Mato Grosso do Sul makes up the list of states that are disputing the investment, which will bring thousands of jobs, but with the know-how of which it has three industrial pulp units and another one already under development.

Paper Excellence's advisory states that the state is on the radar, as one of the main pulp producing centers in the world.

The three pulp producing industrial plants in Mato Grosso do Sul are responsible for producing 4,95 million tons annually. The value represents 25% of all pulp production in the country. Such production led the state to rank as the largest pulp exporter in Brazil, where it has been since 2018. In the total annual production, 28% is turned to abroad.

The data are 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 hectares are eucalyptus trees over 6 years old, which is perfect for hosting the new Paper Excellence pulp mill, generating thousands of empregos.

Company commits to Mato Grosso do Sul

Investments in a new pulp mill are always a long-term and well-planned investment. Its main reason is eucalyptus, it takes an average of six years for the first eucalyptus cut and, in practice, it means that the lack of planted forests can make the investment unfeasible. The MS Government estimate is that a pulp industry needs 250 hectares of eucalyptus planted to start production.

For years, Paper Excellence has been fighting a legal war with J&F for control of Eldorado Brasil. The impasse has stopped the duplication 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 duplicate the Eldorado factory, in Três Lagoas, when the legal dispute is over.

The project for the second Eldorado production line is finalized, licensed in environmental terms and paid for. In the estimate of the State Government, in current values, Eldorado's investment in the expansion of 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 its activities in 2006, with the purchase of the first pulp mill in Meadow Lake, Canada. Since then, the company has grown through investments and strategic purchases of pulp and paper mills in the Americas and Europe.

The company is Canada's largest softwood pulp producer. There are 12,8 million tons of paper and cellulose produced annually and all of its forestry operations are internationally certified.