Fibria advances the project to expand the Três Lagoas unit in Mato Grosso do Sul and hires suppliers

Monday, Aug 03, 2015

Fibria, a Brazilian forestry company and the world’s leading eucalyptus pulp producer, announces the contracting of important service and equipment packages for the Horizonte 2 Project, which will expand production capacity at its Três Lagoas Unit located in the state of Mato Grosso do Sul.

Yesterday, the company hired Andritz Group to supply a package comprising the wood chip yard, fiber line (cooking, washing and bleaching), drying machine, recovery boiler, evaporation and causticizing processes and lime kiln. To date, Fibria has also negotiated the contracting of infrastructure, turbogenerators (Siemens), construction management (Time Now), automatic valves (Flowserve), centrifugal pumps (Sulzer), the entire power transmission and distribution system (Asea Brown Boveri – ABB), which includes the primary substation, engines, motor control center (MCC) and transformers, and Balance of Plant – BOP (Pöyry). The value of the contracts will not be disclosed due to the signing of nondisclosure agreements typical to deals of this type.

The Horizonte 2 Project, which was approved by Fibria’s Board of Directors on May 14 and widely disclosed to the market, involves the construction, at the Três Lagoas Unit, of a second production line with annual pulp capacity of 1.75 million tons. After the expansion, whose startup is expected in the fourth quarter of 2017, the Mato Grosso do Sul unit will reach full annual production capacity of 3.05 million tons of pulp. As a result, Fibria’s total annual pulp production capacity, considering all of its units, will increase from the current 5.3 million tons to over 7 million tons.

Fibria’s unit at Três Lagoas is energy self-sufficient. All energy consumed is generated by the mill itself, using biomass in the form of eucalyptus bark and the liquid biomass resulting from the industrial process. The Horizonte 2 Project not only generates and consumes its own energy, but will also generate surplus power of 120 MWh, which will contribute to Brazil’s energy matrix.

The Horizonte 2 Project is expected to create 40,000 direct and indirect jobs over the two years of its construction. At the height of construction, the project will employ around 10,000 workers. Once commissioned, Fibria’s new pulp line will employ 3,000 direct and indirect workers.

Construction of the Horizonte 2 Project will engage around 60 local suppliers. During construction, Fibria will administer 500,000 hours of training in Forestry operations and another 390,000 hours of training in Industrial operations, which includes preparing both in-house and third-party teams.

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