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Suzano will invest R$1.66 billion in new tissue paper and fluff cellulose production lines and in a biomass boiler

Suzano will invest R$1.66 billion in new tissue paper and fluff cellulose production lines and in a biomass boiler

Suzano will expand its installed production capacity and increase the company’s operational efficiency . R$650 million will be invested in the construction of a tissue paper factory to be installed in the municipality of Aracruz (ES). In the same location, Suzano will spend R$520 million on replacing a biomass boiler in one of its largest cellulose production complexes. Furthermore, the company will allocate R$490 million to a project to expand the supply of fluff pulp at the Limeira Unit (SP).

The total investment of R$1.66 billion, announced together with the release of the balance sheet for the third quarter of 2023, is aligned with Suzano’s strategic business avenues and reinforces the company’s commitment to constantly adapting its operations to the demand of the Brazilian and global markets .

“Suzano’s competitiveness in the production of sanitary paper and Fluff cellulose and the long-term growth of these markets, as a result of changes in consumption habits, underlie the strategy of strengthening our presence in these segments. We are leaders in the Brazilian toilet paper market and pioneers in the production of Fluff cellulose from eucalyptus, which is why we always need to be ready to serve our customers”, says the president of Suzano, Walter Schalka.

Tissue paper is used to make hygiene and cleaning items such as toilet paper, napkins, paper towels and wet wipes. Fluff cellulose is the raw material for absorbent and personal hygiene products such as children’s and adult diapers, feminine pads and pet mats. The new Fluff and Tissue productions will be available to the market by the end of 2025 and in the first quarter of 2026, respectively, and will add 340 thousand tons of Fluff and 60 thousand tons of Tissue to Suzano’s capacity.

The third investment announced by Suzano represents another stage in the modernization process of the Aracruz Unit. The new biomass boiler will increase the factory’s efficiency, increasing the unit’s stability and resulting in environmental gains to the operation. The equipment, which is scheduled to start operating in the fourth quarter of 2025, uses biomass to produce steam, which in turn is used in the cellulose process and in energy generation.

The projects were presented during Suzano Investor Day, held on October 27th. On the same occasion, the company detailed its third quarter results, which benefited from a further drop in the cash cost of production to R$861 per ton, in the midst of a period still marked by lower pulp prices on the global market. Given this scenario, Suzano reported adjusted EBITDA of R$3.7 billion and operating cash generation of R$1.9 billion. Pulp sales totaled 2.5 million tons and paper sales reached 331 thousand tons. Net revenue for the period totaled R$8.9 billion and, in the last line of the balance sheet, the company recorded a negative net result of R$729 million, due to the effect of the exchange rate devaluation that occurred in the quarter, which impacted the portion of the debt in dollars and derivatives.

Between January and September, Suzano invested R$14.4 billion, of which R$6.3 billion was allocated to the construction of a cellulose factory in Ribas do Rio Pardo (MS). Known as the Cerrado Project, it will come into operation by June 2024, the year of Suzano’s centenary.

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