With this additional investment in the project for the new factory in Ribas do Rio Pardo, Suzano's investments exceed R$ 19 billion
Suzano Papel e Celulose, the largest global producer of eucalyptus pulp, is investing over R$4,6 billion in the mega-project called Cerrado, where the Company is building its largest factory in the city of Ribas do Rio Pardo, in the state of Mato Grosso do Sul. With this additional amount, the total investment in the project reaches R$ 19,3 billion. With the venture that will start operations in the second half of 2024, Suzano will become the largest pulp producer in the world. Read more this news: New Suzano 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 the new Suzano factory
Suzano's total investment is around R$ 19,3 billion, with a capacity of 2,55 million tons per year and, according to the largest global producer of eucalyptus pulp, the cost/box of production of the Cerrado project, in the state of Mato Grosso do Sul, will be less than R$ 500 per ton in real terms after the ramp up and below R$ 400 per ton, after 2030.
Most 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 plant in Ribas do Rio Pardo, in Mato Grosso do Sul, will also contribute to the fulfillment of ESG goals (acronym in English for the best environmental, social and governance practices), since the company's new venture will have a low level of carbon emissions and will rely on gasification technology of biomass to replace fossil fuel in lime kilns.
Job creation in the construction of the new factory
During the unit's construction peak, Suzano disclosed that approximately 10 direct jobs should be generated, in addition to thousands of indirect jobs. Once the work is completed, the new factory will employ around 3 people, including employees and third parties. Some of these people are already being trained in the region itself.
Recently, Suzano, in partnership with Senai, opened 250 vacancies for four professional training courses in Ribas do Rio Pardo, in the central region of Mato Grosso do Sul, where the company is going to build its new factory. The training was carried out in partnership with Senai (National Service for Industrial Learning).
Other details about the Cerrado Project
The new plant 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 the Brazilian electrical system. This new project by Suzano is on track to be the first unit in the pulp and paper sector in the country to be considered fossil fuel free, a new milestone for the company in terms of eco-efficiency, which demonstrates 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 mill in the world, but still depends on precedent conditions, such as compliance with the parameters established in Suzano's Financial Policy and negotiations with suppliers. The Cerrado Project will have the company's cash generation as its main source of funds, which may be complemented with financing, provided that the conditions are attractive in terms of cost and term.
