Suzano to invest additional $822 mln in its Cerrado Project
Brazilian pulpmaker Suzano plans to invest an additional $822 million in a new wood pulp facility in Mato Grosso do Sul state. The additional investment will be in forestry, logistics and a chemical plant that form part of its Cerrado Project. Total spending in that project is expected to reach 19.3 billion reais through 2024, according to a securities filing.
Suzano estimates that the cash cost of pulp production at the new facility, not including scheduled maintenance stoppages, will be less than 500 reais per tonne once the project’s ramp-up is complete. From the beginning of the second forestry cycle, the cash production cost of pulp, not including maintenance, should fall to less than 400 reais per tonne.
