Suzano Signs Agreement for the Construction of 17 Pulp Transport Vessels

Suzano Signed An Agreement With Chinese Company For The Construction Of Ships. 17 Vessels Will Be Built Focusing On Cellulose Transport.

During the business meetings held by the Brazilian mission in China, Suzano signed an agreement with the Chinese shipping company Cosco for the construction of 17 cellulose transport ships and other biological base products. According to reports, the company involved in shipbuilding also includes a long-term transportation contract, according to a document from the Brazilian mission delivered to journalists accompanying the event with businesspeople from both countries.

Suzano Paper and Pulp Reports R$ 7.459 Billion Profit

Reuters reports that Suzano, the largest eucalyptus pulp producer in the world, which has China as one of its main markets, besides the shipbuilding, also signed a memorandum of understanding with China Paper Company for a partnership in biological base materials and carbon, as well as investments in research and development. The values of the agreements and other information were not disclosed.

It is worth mentioning that, in the fourth quarter of 2022, Suzano reported a profit of R$ 7.459 billion, an increase of 222% compared to the same period the previous year. According to the report, adjusted EBITDA reached R$ 8.175 billion in the period, an increase of 29% when considering the same period of the previous year.

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Also according to the report, adjusted EBITDA reached R$ 8.175 billion in the period, an increase of 29% compared to the same period in 2022. The net revenue for the previously mentioned period totaled R$ 14.370 billion, an increase of 25% over the fourth quarter of 2021, and the leverage in reais was 2.5x in 4Q22, compared to 2.2x in 3Q22.

Suzano Launches Hub in China

In addition to the new agreement for shipbuilding, Suzano inaugurated its Innovation Hub in China on the 21st of this month. The event was attended by customers, government representatives, members of the Academy, and other stakeholders.

The facility, located in ZhangJiang Science City in Shanghai, aims to address the growing demand from customers for applications and materials developed through cellulose and new biomaterials.

The Hub will also serve as a partnership base for various participants in the field and other stakeholders in China and abroad to drive sustainable progress through innovation. China, due to its transition goals for a cleaner economy, has demonstrated an accelerated transition from high-speed expansion to high-quality growth, which has been made possible by its extensive experience in R&D and innovation gained over the past decades.

Suzano Paper and Pulp Also Invests in Brazil

Also this month, Suzano announced the installation of a new factory that will operate in cellulose production, aiming to create the largest production line of the material in a single scale in the world, as previously reported by Correio do Estado. The project will receive a total investment of R$ 14.7 billion, in addition to generating 13,000 jobs throughout the construction and operation process of the factory in MS.

Located in Ribas do Rio Pardo, the new facility will have the capacity to produce 2.3 million tons of eucalyptus pulp per year. The company plans to begin production at the new unit, which promises to create thousands of jobs, by the end of the first quarter of 2024, a project that has been named Project Cerrado, due to its location in MS.