Lwarcel Celulose on June 17 announced it will move forward with the expansion of its Lençóis Paulista bleached eucalyptus kraft (BEK) mill in southeast Brazil, after receiving tax benefits from the São Paulo state government. The Lençóis Paulista plant currently produces 250,000 tonnes/yr of BEK pulp, and Lwarcel plans to increase its capacity to 1 million tonnes/yr.

In a ceremony held in São Paulo on June 17, the state governor Geraldo Alckmin signed a decree which benefits the pulp industry, among other sectors, by exempting it from the import tax over capital goods used in pulp industrial projects. The measure also authorizes the full and immediate tax credit of domestic purchases of good for fixed assets, as well as changes the timing of the tax demand during the pre-operational phase or in the cases there is insufficient amount of GST credit to be absorbed by the investor.

risiinfo.com