Suzano to Invest R$1.66 Billion in New Tissue Paper Mill, Expand Fluff Pulp Capacity and New Biomass Boiler

Suzano, the world's largest producer of market pulp, announces on October 26^th a series of projects aimed at expanding its installed production capacity and which will enhance its operational efficiency. It will invest R$650 million in the construction of a tissue paper mill in Espírito Santo, where it will also invest R$520 million to replace a biomass boiler. The company will also invest R$490 million to expand the supply of fluff pulp in São Paulo.

The total investment of R$1.66 billion, announced during the disclosure of the 3Q23 results, is aligned with Suzano's strategic business avenues and underscores its commitment to constantly adapt its operations to evolving demand in Brazil and the global markets.

“Suzano's competitive edge in the production of sanitary papers and fluff pulp, and the long-term growth of these markets driven by changes in consumption habits, underpin the strategy of strengthening our presence in these segments. We are the leaders in the Brazilian tissue paper market and pioneers in the production of fluff pulp from eucalyptus, which is why we must always be ready to serve our customers,” says Walter Schalka, CEO of Suzano.

The new fluff- and tissue-based products will reach the market by the end of 2025 and in 1Q26, respectively, and will add 340 thousand tons of fluff and 60 thousand tons of tissue to Suzano's production capacity.

The third investment announced represents another phase in the process of modernizing its Aracruz Unit. The new biomass boiler will make the mill more efficient and stable, resulting in environmental gains for the operation. The boiler is slated to go operational in 4Q25.

The projects will be unveiled during Suzano Investor Day, to be held on October 27^th when the company also will detail the 3Q23 results, which benefited from further improvements in the cash cost of production to R$861 per ton, at a time still marked by weak global pulp prices. Suzano reported adjusted EBITDA of R$3.7 billion and operating cash flow of R$1.9 billion. Pulp sales totaled 2.5 million tons and paper sales reached 331 thousand tons. Net revenue was R$8.9 billion. The company recorded net loss of R$ 729 million, impacted by the weakening of BRL during the quarter, which affected the portion of debt in USD and derivatives.

To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231026224671/en/

Contact information

Hawthorn Advisors
Jamie Plotnek
suzano@hawthornadvisors.com