Suzano suspends Piau pulp mill project

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Suzano suspends Piau pulp mill project

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Brazil, Piau

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Suzano's net debt was almost BRL6.4bn (€2.5bn) at the end of Q4 2012, up 16.7% year-on-year. Expansion projects suspended for an indefinite period of time. Suzano Papel e Celulose (Suzano) has put on ice its renewable energy and the Piauí pulp mill expansion projects. On 12 March, the Brazilian pulp and paper company informed that it had suspended the two projects for an indefinite period of time in order to focus on productivity improvement and debt reduction measures. The resumption of these projects was dependent on macroeconomic and market conditions, and on the company's level of debt, according to Suzano. Suzano planned to build a 1.5 million tpy eucalyptus pulp mill in Brazil's north-eastern state of Piauí at an investment cost of $2.3bn (€1.7bn) and has already invested in the forestry base to secure raw materials supply for the new pulp unit. The BEK pulp mill was expected to start production in mid 2016. With the renewable energy project run by Suzano Energia Renovável, the pulp and paper company considered to enter into the biomass energy market. Suzano intended to invest about $800m (€615m) in three wood pellet production units with an installed capacity of 1.0 million tpy each. The production start up was expected for 2014. http://www.euwid-paper.com/news/singlenews/Artikel/suzano-suspends-piaui-pulp-mill-project.htm Project Name Suzano suspends Piau pulp mill project Location Brazil, Piau Commence 2013 Completion -NA- Estimated Investment $2.3bn (1.7bn) Capacity -NA- Key Players Suzano Energia Renovvel