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The Conclusion of Suzano’s Cerrado Project Is Approaching and Promises to Revolutionize the Pulp Sector, With the Expectation of Generating Thousands of New Jobs and Becoming the Largest Pulp Mill in the World!
An extremely important date for the pulp sector is approaching! The largest pulp mill in the world will start operations in June in the city of Ribas do Rio Pardo. With the end of the Cerrado Project’s construction nearing, this mega-enterprise will be inaugurated after three years of construction and around 10,000 jobs created. The Cerrado Project is one of the largest and most daring undertakings in Suzano’s history.
The new unit’s differentiating factor is the gasification of biomass to replace fossil fuel in lime kilns, a new benchmark for Suzano in eco-efficiency, highlighting the company’s commitment to people and the planet.
‘Suzano’s Cerrado Project Required R$ 22.2 Billion in Investments
A global reference in the production of products developed from eucalyptus cultivation, particularly in pulp production, the conclusion of Suzano’s Cerrado Project in Ribas do Rio Pardo required R$ 22.2 billion in investments and will expand the company’s production capacity by about 20%.
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The project, in addition to the jobs generated, will produce 2.55 million tons of pulp per year, increasing Suzano’s installed capacity to 13.5 million tons per year, along with 1.5 million tons of installed capacity for paper and other products.
According to the company, the completion of the Cerrado Project is approaching and is in the final phase of electromechanical assembly and commissioning. Considering the infrastructure works for the implementation of the factory such as earthworks, drainage, and road layout of the site, which began in April 2021, the enterprise will complete three years of execution.
Of the total investment of R$ 22.2 billion for the completion of Suzano’s Cerrado Project, R$ 15.9 billion refers to industrial capital investment and R$ 6.3 billion relates to resources allocated for forestry, logistics, and other activities.
More Than 10,000 Jobs Were Created During the Construction Phase of the Cerrado Project
According to Maurício Miranda, engineering director at Suzano and responsible for the Cerrado Project, one of the project’s differentiating factors that makes it competitive is the adherence to the deadlines set in the schedule and the initially predicted budget.
Miranda emphasizes that we are facing a significant investment that created more than 10,000 jobs at the peak of the works, with all date and value projections already confirmed. In addition to the 10,000 jobs created during the peak of construction, Suzano expects to create 3,000 new jobs upon completion of the Cerrado Project. These positions will include direct and outsourced roles in the industrial and forestry areas.
The project includes energy production, and the new factory will have a clean energy generation structure, using biomass as a fuel source. Its generation capacity will be sufficient not only to meet the operational demands of the unit but also to generate a significant energy surplus, estimated at about 180 MW average – enough to supply a city with 2.3 million inhabitants per month, which will be exported to the grid.
The Completion of the Cerrado Project Will Bring Significant Results to Suzano and the Pulp Industry
The conclusion of Suzano’s Cerrado Project coincides with the recovery of international prices in the pulp sector, which were greatly impacted by the decline observed in 2023. At the end of 2022, the price of raw material was around US$ 850 per ton and fell to almost half that in the first quarter of last year, gradually recovering since then.
At the beginning of this year, it recovered, trading at US$ 700 per ton in China and reaching a record of US$ 1,600 per ton in the USA and US$ 1,400 per ton in Europe, the three main benchmark markets for the raw material. In this scenario, the Cerrado Project can provide significant results for Suzano, given its ability to combine operational efficiency with good sustainable practices.
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