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Fibria moves forward to September the completion and startup of its new mill in Três Lagoas

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Fibria, a Brazilian forestry company and the world’s leading eucalyptus pulp producer, announces that it is moving forward the expected date for the completion and startup of the Horizonte 2 Project to build a second pulp production line at its unit in Três Lagoas, Mato Grosso do Sul. Previously scheduled for the fourth quarter of 2017, the mill is now slated to start operations in the third quarter of the year, in September.

“Since we first announced the expansion project, in 2015, we have invested all our efforts into finishing Horizonte 2, always supported by a solid financial structure. Over these last two years, we have revised upwards the new line’s production capacity and now we are moving forward its conclusion, which attests to the dedicated effort made by the entire team to capture productivity gains, cut costs and always deliver their best. With the accelerated commissioning of the new line at Três Lagoas, we embark on a new phase of reaping the fruits of what we have sown,” said Marcelo Castelli, Fibria CEO.

Construction on the expansion project is currently 87% complete, while its financial progress stands at 59%. In February, construction began on the intermodal terminal in Aparecida do Taboado, Mato Grosso do Sul, which will distribute the pulp produced by the new mill in Três Lagoas to the Macuco Terminal at the Port of Santos in São Paulo, which also is already under construction. The intermodal terminal, which integrates various transportation means, such as highway and rail, is located on Highway BR 158 and will have annual pulp shipment capacity of 1.95 million tons. Construction on the terminal is slated to be concluded in July 2017.

The forestry base to supply Fibria’s new production line is already assured and located near the mill in Três Lagoas, with a maximum supply radius of 100 kilometers, in line with the planning. Of the 187,000 hectares of planted forests required to supply the new unit, 135,000 hectares already have been planted with eucalyptus and another 52,000 hectares will be planted in 2017 and 2018.

Fibria estimates that, from September to year-end, the new mill in Três Lagoas will produce 377,000 tons of pulp. Production will ramp up gradually to reach the mill’s full capacity of 1.95 million tons/year in 2020.

Fibria’s new production line adopts the most modern concepts in ecodesign, with cleaner and more efficient production processes. In addition, all the energy consumed is generated by the mill itself using biomass in the form of eucalyptus bark and the liquid biomass resulting from the industrial process. With the expansion in production capacity, the industrial unit will generate and consume its own energy and have surplus power of 130 MWH, which will contribute to Brazil’s energy balance and benefit the country’s energy profile with more renewable sources.

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