Suzano starts operating world’s largest pulp production line

23 Jul 2024 --- Suzano, the world’s largest market pulp producer, announces the operational startup of its new Brazil-based mill, the largest single pulp production line in the world, in Ribas do Rio Pardo. This marks the completion of one of Brazil’s largest ever private investment projects.

The facility will have an annual production capacity of 2.55 million metric tons of eucalyptus pulp, increasing Suzano’s production capacity by more than 20% to 13.5 million tons annually. 

The project is the result of a total investment of R$22.2 billion (~US$4.3 billion), of which R$15.9 billion (~US$3.1 billion) was allocated for the construction of the plant and R$6.3 billion (~US$1.2 billion) was earmarked for initiatives such as the formation of the planting base and the pulp outbound logistics. 

“The successful completion of the Cerrado Project reflects the dedication and execution capability of each person involved in this grand and transformative project. It also attests to the culture of excellence that permeates the entire organization, masterfully led by Walter Schalka during his 11-year tenure here,” says Beto Abreu, newly-named CEO of Suzano. 

“His vision and ambition have proven key in delivering a world-class mill within the planned budget. Crucially, this is also a project which has, at every stage, adhered to Suzano’s core focus on supporting sustainability and having a positive impact on local communities.”

Suzano aims to meet global demand for sustainably produced eucalyptus-based products. Reducing emissions
Suzano also has the capacity to produce 1.5 million tons of paper annually, including sanitary paper, printing and writing and packaging lines, among other products that use pulp as raw material.

In line with Suzano’s ESG Commitments to Renewing Life, the site has been purpose-built to meet global demand for sustainably produced eucalyptus-based products. The mill will use renewable biomass to produce, on average, 180 MW of surplus green power a month. 

This energy, which will be directed toward the mill’s local suppliers and the national grid, is enough to power a city of up to two million inhabitants. The proximity of the mill to Suzano’s eucalyptus farms means emissions and time from logging transportation will be significantly reduced. 

The structural distance from forest-to-mill is only 65 kilometers on average compared to Suzano’s structural average supply radius of 150 kilometers. The plant will also be self-sufficient in the production of sulfuric acid and hydrogen peroxide.

Renewable raw material projects
This is the largest investment in Suzano’s 100-year history and has a series of “operational and socio-environmental advances.”

“The new plant will lay the foundations for future growth opportunities, such as the development of innovative new products from renewable raw material, and strengthen Suzano’s irreplicable business model,” says Walter Schalka, who recently stepped down as Suzano’s CEO.

The completed project will also impact the local community and wider regional economy. Having created 10,000 jobs during the construction phase, the operational mill will now provide 3,000 full-time jobs at the mill and the surrounding forestry and logistic operations.

Suzano is also making significant investments into improving local infrastructure and broadening access to quality education and healthcare. 

The company delivered more than R$300 million (~US$54 million) in construction and equipment in the municipality, in building new housing units and a new medical center and in voluntary social initiatives focused on sustainable development, income generation and reduction of poverty indicators in the region. 

The investments were distributed across seven categories: Education, income generation, rights protection, infrastructure, health, relationship with communities and work.