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Eldorado to Start Brazil Pulp Mill This Year, Expand to World's Largest in 2017, 2021

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Eldorado Celulose e Papel, Brazil, reports that the single-line, bleached eucalyptus kraft pulp mill it is building in Tres Lagoas (Mato Grosso do Sul state), Brazil, will startup late this year with capacity to produce 1.5 million metric tpy. The company then plans a $3.225 billion, two-phase expansion that will add a production line in 2017 and 2021, respectively, creating, by far, the world's largest pulp mill, according to a report by Industrial Info Resources, Sugar Land, Texas, USA.

The 2017 phase will double the mill's capacity to 3 million metric tpy, and the 2012 phase will increase total production capacity to 5 million metric tpy of eucalyptus kraft pulp.

The pulp, produced from plantation eucalyptus fiber, will be exported to paper producing markets in South America, North America, Europe, and Asia. The mill will use Best Available Technology (BAT) and "will be focused on the sustainability of industrial and forestry processes," Eldorado notes. The company also points out that the new mill has been designed to optimize energy. It will be self-sufficient in electricity produced from biomass and "will contribute to the conscientious use of natural resources." This will help improve production costs, which will be among the most competitive on the market, the company adds.

The characteristics of the municipality of Três Lagoas, with its relief, soil, climate, infrastructure and logistics, combined with the welcoming attitude of the local people and support offered by the First Sector, contributed to the choice of where the mill is located, Eldorado emphasizes. The mill will enjoy unique logistics for incoming raw materials and shipping production. Transport benefits include highways, railroads, and the Tietê-Parana waterway, all of which allow production to be shipped to the port of Santos, in São Paulo state.

Eucalyptus fiber for the new mill and its expanded operations in 2017 and 2021 will be supplied by eucalyptus plantation operator Florestral Brasil S.A. In November 2011, the incorporation of Florestal Brasil by Eldorado was approved "by way of a material fact," the company explains. The decision on the incorporation was taken in view of the fact that the unification of the operations would optimize the companies' activities and result in efficiency gains. "Considering that Florestal Brasil's core business was the production of eucalyptus forests, and that Eldorado Celulose e Papel produces and sells pulp, the incorporation raises the prospect of better results," Eldorado says.

Florestal Brasil was founded in July 2007 and began its forestry operations by planting eucalyptus and producing seedlings in its own nurseries, with a capacity to produce 3 million cloned seedlings a month.


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