Investments in Tissue Production in Brazil’s Northeast

July 21, 2017

This week, Suzano announced investments to acquire equipment for converting tissue paper, also known as sanitary paper, into finished products. The mill in Imperatriz will be the first one in the state of Maranhão to manufacture products such as toilet paper, tissues, napkins and more. Meanwhile, at the mill in Mucuri, Bahia, the investment involves the construction of a second conversion line.

The main purpose of the new mills is to supply the growing market for sanitary papers in the Northeast and North regions of Brazil. “Per-capita consumption in the two regions is still below the national average, and we believe the economic recovery will further drive local consumption of sanitary papers”, said Walter Schalka, CEO of Suzano Pulp and Paper. Today, the two regions are supplied mainly by mills located in the country’s Southeast and South.

In 2015, we announced an investment in tissue paper production and now, after a series of analyses conducted internally, we also will begin converting jumbo rolls into finished products.

Initially, the projects in both tissue paper units will create 160 to 200 new jobs and require total investment estimated at R$540 million. The project envisages annual production capacity of 120,000 tons of tissue paper, with 60,000 tons allocated to finished products and the other 60,000 tons to jumbo rolls.

The Imperatriz Unit is expected to start production in the fourth quarter of this year. Meanwhile, the line at the Mucuri Unit should begin operations in the third quarter of 2017.

Suzano has yet to determine if its production will supply the toilet paper, napkin and paper towel and other markets.

Source: Suzano