Bracell announces the investment on a new paper pulp mill in Brazil

Bracell, a global dissolving pulp producer whose controlling stake was held by RGE Group, plans to invest $4 billion USD to build a new paper pulp mill inÁgua Clara (MS), Brazil.

The announcement was made at the Brazil-Indonesia Business Forum held in Rio de Janeiro on Nov 17, parallel to the G20. The pulp mill, which will produce 2.8 million tons of paper pulp per year, will be installed 15 kilometers from the city's perimeter and will create about 10,000 jobs during the works and 3,000 during the operational phase.

The event was attended by Eduardo Riedel, governor of Mato Grosso do Sul, along with his secretaries Rodrigo Perez (Segov) and Jaime Verruck (Semadesc). At the business roundtable, Riedel stressed the importance of investment and strengthening the state's role as a strategic center for the paper pulp industry.

"Indonesia is already present in our state, such as Bracell, which has important investments, and is one of the important frontiers of investment in the paper pulp sector, already reaching 1.6 million hectares of plantations. Our duty is increasingly to create a favorable investment climate for companies in these sectors and others, "said the governor.

The state delegation presented at the meeting aspects related to environmental licensing, tax incentives and logistics improvements. Among the highlights is the auction of the highway that constitutes the Pulp Route, scheduled for Dec 6 on the Stock Exchange, which strengthens the prospects for expansion of the sector.

Jaime Verruck confirmed that the environmental licensing process for the new plant is already underway and the study is scheduled to be completed in Feb 2025." Bracell has a plantation inÁgua Clara, which has expanded to Santa Rita do Pardo and Bataguassu." said Verruck.