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Updated on 30.10.2015

MídiaReleases

October 30, 2015 - Fibria lays the cornerstone of the Horizonte 2 Project, which will more than double the capacity of its Três Lagoas unit in Mato Grosso do Sul

  • Construction already underway in the R$ 7 billion project
  • Project will create 40,000 direct and indirect jobs
  • New production line slated for startup in the fourth quarter of 2017
  • Três Lagoas Unit’s total pulp production capacity will be 05 million tons p.a.

 

Três Lagoas (MS), October 30, 2015 – Fibria, a Brazilian forestry company and the world’s leading eucalyptus pulp producer, today lays the cornerstone of the Horizonte 2 Project, which will expand production capacity of its Três Lagoas Unit located in the state of Mato Grosso do Sul. The ceremony celebrates the official start of construction work, which is already in progress.

The Horizonte 2 Project, approved by the Board of Directors of Fibria on May 14th, is backed by an investment of R$ 7.7 billion (equivalent to about US$ 2.5 billion). Over its two years of construction, the project will create around 40,000 direct and indirect jobs. At the height of construction, the project will employ around 10,000 workers. Once commissioned, in the last quarter of 2017, Fibria’s new pulp line will employ 3,000 direct and indirect workers.

Considered one of Brazil’s largest private investments focused on exports, Fibria’s expansion project is expected to begin operations in the fourth quarter of 2017. With this, the annual pulp production capacity of the Três Lagoas unit will increase from 1.75 million tons to 3.05 million tons.

“Expansion of the Três Lagoas unit is a milestone in the history of Fibria, which rekindles its vocation for growth combined with responsibility. The start of construction follows a very well planned project, with the main supply contracts already signed. It is with tremendous pride that we are making this huge investment in Brazil, bringing jobs, better quality of life and development to Três Lagoas, Mato Grosso do Sul and Brazil,” said Fibria CEO, Marcelo Castelli.

The pulp produced by Fibria at Três Lagoas will be sold in the domestic market and transported by rail to the Port of Santos in São Paulo, from where it will be exported to Europe, North America and Asia. Considering all of the Company’s units, Fibria’s total annual pulp production capacity will increase from the current 5.3 million tons to over 7 million tons, consolidating the company’s position as the world’s largest eucalyptus pulp producer.

 

Investment history

The execution of the Horizonte 2 Project will rely on around 60 local suppliers and will positively affect public finances by contributing an estimated R$ 450 million in taxes during construction.

“Investments of more than R$ 7 billion, creation of thousands of jobs and opportunities for the people of Mato Grosso do Sul and Brazil, who will have in Fibria  – one of the largest and most important companies in this sector on the planet – their chance to lead a prosperous and dignified life. This new unit not only expands the company’s huge and enviable production capacity, but also strengthens Mato Grosso do Sul’s position as a reliable and safe destination for private investments from both Brazil and abroad,” said the Governor of Mato Grosso do Sul, Reinaldo Azambuja.

In July, Fibria signed contracts for important service packages, such as infrastructure, construction management, wood chip yard, fiber line, drying machine, recovery boiler, evaporation, causticizing, lime kiln, valves, turbogenerators and the entire power transmission and distribution system. In September, the company signed contracts for water treatment stations, the chemical plant, temporary facilities and management of the Administrative Services Center.

The Horizonte 2 Project financing structure involves export credit agencies (ECA), the Brazilian Development Bank (BNDES) and the Midwest Development Fund (FDCO). Fibria also contracted a US$ 400 million Export Prepayment Facility Agreement from financial institutions and issued R$ 675 million in Agribusiness Receivables Certificates (CRA). Furthermore, around 40% of the investments in the project will come from the company’s own funds.

 

Competitiveness and Sustainability

As with all Fibria projects, Horizonte 2 will have sustainability as a business principle. The new industrial complex will have even cleaner production processes, with all the energy consumed generated by the facility itself using the biomass resulting from the industrial process. Apart from generating and consuming its own energy, the Horizonte 2 Project will generate surplus energy of 120 MWh, which will contribute to Brazil’s energy matrix.

The project’s industrial process also features efficient use of water resources, with around 80% of the water withdrawn recycled and recirculated between 3.5 and 5 times in the production process before being treated and returned to the environment.

Another major source of competitiveness of the Horizonte 2 Project is its access to wood. With the new unit, the average distance from the forest to supply the current production line and the new line at the Três Lagoas Unit will be just 95 kilometers.

 

Concern for people

Fibria has contracted health insurance from Hospital Auxiliadora in Três Lagoas for the service providers who will work on the Horizonte 2 Project. The health insurance will provide medical and outpatient care to nearly 8,000 outsourced employees who will work on the project. Fibria will also maintain a first aid station at the construction site, staffed by doctors and nurses to avoid overloading the health care system of Três Lagoas.

“Since beginning its operations in our city, Fibria has contributed to local development by generating employment opportunities, training our professionals, improving our services and our capacity for progress. I am very happy to know that Três Lagoas is performing well amidst the country’s current crisis. We believe in the great company that is Fibria, which is here to stay and make Três Lagoas one of Brazil’s great cities. Congratulations Fibria. We are proud of the whole history of this company and are happy to receive the Horizonte 2 Project, which is coming to reaffirm the progress our city has made in 100 years,” said the mayor of Três Lagoas, Márcia Moura.

Watch the video with more information on the Horizonte 2 Project at https://www.youtube.com/watch?v=hmpUQVSnPQo

 

About Fibria

A world leader in eucalyptus pulp production, Fibria is a company that strives to meet the growing global demand for forestry products in a sustainable manner. With annual pulp production capacity of 5.3 million tons, the company has industrial units in the cities of Aracruz (Espírito Santo), Jacareí (São Paulo) and Três Lagoas (Mato Grosso do Sul), and in Eunápolis (Bahia), where it operates the Veracel plant through a joint-operation with Stora Enso. In May 2015, Fibria announced the expansion of its Três Lagoas unit in Mato Grosso do Sul, which will receive a new line with the capacity to produce 1.75 million tons of pulp per year. The new line, which will receive investment of US$2.5 billion, is slated to start operations in the fourth quarter of 2017. Fibria has 967,000 hectares of forests, with 563,000 hectares of planted forests and 343,000 hectares of environmental preservation and conservation areas. The pulp manufactured by Fibria is exported to more than 40 countries.

 

Media Relations: 

MATO GROSSO DO SUL – Performa

Fernanda Turco / Luciana Navarro

fturco@performa.com.br / Luciana.navarro@performa.com.br

Telephone: +55 12 98158.4205 / +55 67 9803.7092

 

SÃO PAULO – FSB Comunicações

Paula Barcellos                               Cindy Correa                                       Fernando Antunes

paula.barcellos@fsb.com.br        cindy.correa@fsb.com.br                  fernando.antunes@fsb.com.br

11 3165-9589                                   11 3165-9570                                        11 3165-9612

 

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