MethodologyContact usSupportLogin
Brazilian pulp and tissue paper producer Bracell confirmed to Fastmarkets on Tuesday August 27 that it has requested the environmental license to analyze the viability of installing a new pulp mill in the city of Água Clara, Mato Grosso do Sul state, midwest Brazil.
As previously reported, Bracell has been expanding plantations in this state, initially sourcing wood for its Star Project in the neighboring state of São Paulo, where it started up two flexible pulp lines in 2021 with a combined capacity of 3 million tonnes per year (tpy) of bleached eucalyptus kraft (BEK) pulp or 1.5 million tpy of dissolving pulp (DP).
Fastmarkets also contacted Jaime Elias Verruck, the Mato Grosso do Sul secretary for environment, development, science, technology and innovation, who said that a deal with Bracell was signed in the previous week, with the company intending to install a 2.8 million tpy mill in the state.
“Bracell already had a robust forestry base in the state, as well as a seedlings nursery… The company has around 2,000 workers in the state, as it initially started to plant here to source wood [for its mill in São Paulo state], but advanced to a point where it can also study the construction of a new mill,” Verruck said.
The secretary confirmed that the state of Mato Grosso do Sul remains very proactive in supporting new pulp projects, citing the positive examples of the new Suzano Cerrado project and Arauco’s plan to also build a 2.5 million tpy project there.
“We will now structure the fiscal incentives and licensing, with the entire process taking around one year. With this new project, we are converting the state of Mato Grosso do Sul into the ‘Pulp Valley,’` attracting innovation and qualification for the region. As a counterpart, the state has the challenge to keep providing road and rail infrastructure, as well as a qualified workforce,” Verruck added.
According to the secretary, at this point Bracell is at the step of obtaining the previously mentioned license, which is followed by an installation license that allows construction work to begin, and later an operation license that authorizes start-up.
“We believe that the installation license can come in around one year, after all studies related to environment, monitoring and public audiences. After that, it depends on the timing of the company, when it will decide to proceed with the project,” Verruck said.
Want to learn more about price movements in the global pulp market? We provide a range of market intelligence, including short-term forecasts, price data and market coverage to keep you one step ahead of the market. Speak to our team and find out more today!