Suzano approves new plant and exceeds 3Q forecast

The third quarter was full of positive news for Suzano despite uncertainties regarding the demand for pulp in China, the pressure of rising commodities on costs, and bottlenecks in global logistics. The company, the world’s largest producer of eucalyptus pulp and one of the largest paper manufacturers in Latin America, announced above-market-expectation results on October 28th. Its board of directors approved the Cerrado Project, with investments of R $14.7 billion in the new plant in Ribas do Rio Pardo (MS).

Plans to build the new factory had already been revealed, but they depended on the collegiate’s green light and the fall in financial leverage. With the strong result of the interval, the project was approved with the same investment originally estimated and nominal production capacity of 2.55 million tons per year of eucalyptus pulp, above the 2.3 million tons initially announced – a sign that Suzano was successful in supplier negotiations.

In a relevant fact sent to the Brazilian Securities Commission (CVM), the company stated that disbursements will take place between 2021 and 2024. The start of operations, previously scheduled for the first quarter of 2024, should take place in the second half of the same year. More details about the Cerrado Project will be announced at an event on November 5th.

Source: Valor Econômico

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https://valor.globo.com/empresas/noticia/2021/10/29/suzano-aprova-nova-fabrica-e-supera-projecoes-no-3o-tri.ghtml

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