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With This Investment in the New Factory Project in Ribas do Rio Pardo, Suzano’s Investments Exceed R$ 19 Billion
Suzano Papel e Celulose, the world’s largest producer of eucalyptus pulp, is investing an additional R$ 4.6 billion in the megaproject called Cerrado, where the Company is building its largest factory in the city of Ribas do Rio Pardo, in the state of Mato Grosso do Sul. With this new amount, the total investment in the project reaches R$ 19.3 billion. With the facility set to begin operations in the second half of 2024, Suzano will become the world’s largest producer of pulp. Read this news as well: Suzano’s New Factory is Inaugurated in Espírito Santo and the Company Announces Investments of R$ 782 Million in the State
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Other Investments in the Construction of Suzano’s New Factory
Suzano’s total investment is approximately R$ 19.3 billion, with a capacity of 2.55 million tons per year, and according to the world’s largest producer of eucalyptus pulp, the cost per ton for the Cerrado project in the state of Mato Grosso do Sul will be less than R$ 500 in real terms after the ramp-up and below R$ 400 per ton after 2030.
The majority of Suzano’s disbursements related to the Cerrado project will occur between 2022 and 2023. In addition to increasing Suzano’s pulp production capacity by more than 20%, the operation of the new factory in Ribas do Rio Pardo, in Mato Grosso do Sul, will also contribute to the fulfillment of ESG (Environmental, Social, and Governance) goals, as the company’s new facility will have a low level of carbon emissions and will incorporate biomass gasification technology to replace fossil fuels in lime kilns.
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Job Creation in the Construction of the New Factory
During the peak of construction of the unit, Suzano announced that approximately 10,000 direct jobs should be created, in addition to thousands of indirect jobs. Once the project is completed, the new factory will employ around 3,000 people, including in-house staff and third-party employees. Some of these individuals are already being trained in the region.
Recently, Suzano, in partnership with Senai, opened 250 spots for four professional training courses in Ribas do Rio Pardo, in the central region of Mato Grosso do Sul, where the company will build its new factory. The training was conducted in partnership with Senai (National Service for Industrial Learning).
Other Details About the Cerrado Project
The new factory will mitigate the effects of climate change related to the increased supply of renewable energy generation in the country, with the capacity to export approximately 180 MW to Brazil’s electrical system. This new project by Suzano is on track to be the first unit in the pulp and paper sector in the country considered free of fossil fuel, a new milestone for the company in eco-efficiency, highlighting its commitment to society and the planet.
The implementation of the project, which will have the capacity to produce 2.3 million tons of eucalyptus pulp annually, will result in the largest single-line pulp factory in the world but still depends on precedents, such as meeting the parameters set in Suzano’s Financial Policy and negotiations with suppliers. The Cerrado Project will primarily rely on the company’s cash generation as a funding source, which can be complemented by financing, provided that the conditions are attractive in terms of cost and duration.
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