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Media | News
09.01.10 - Fibria completes its first year and is ready for expansion
São Paulo – Fibria, the company created by the merger between Aracruz and VCP and world leader in the production of market pulp, completes its first year on this date and is about to resume its planned expansion, in the light of the positive results obtained in the last 12 months.
In its first year in operation, Fibria gave attention to the management of its liabilities, carrying out 2 bond issues and other transactions that enabled the company to settle all its debt arising from derivative transactions and balance its debt profile.
Another landmark achieved during this period was Fibria’s listing in the New Market, the BM&FBovespa exchange’s listing for companies with the highest level of corporate governance, which gives the company a high profile not only within the Pulp & Paper sector, but also amongst the companies with the greatest weighting in the Ibovespa index. And Fibria is also included in two very important corporate sustainability indexes: the New York Stock Exchange’s Dow Jones Sustainability Index (DJSI World) and the Bovespa Corporate Sustainability Index (ISE).
To that one should also add Fibria’s operational excellence, with particular to the Três Lagoas Unit (MS), the world’s largest pulp mill, with a production capacity of 1.3 million tons a year. Since the start up, in March 2009, the unit has been setting new production records, as has the Aracruz Unit (ES).
Integration and growth
Company CEO Carlos Aguiar stated, “during this first year of activities, our focus was on integration and determining the priorities that will guide our sustainable growth over the next few years”.
Given the strong international pulp market, Fibria is resuming its growth plans, with the expansion of its forestry base, aimed at bringing forward, from 2016 to 2014, the project for the construction of a second mill at Três Lagoas, with a production capacity of 1. 5 million tons of pulp a year. The project will require a total investment of around R$ 5.8 billion and the process for obtaining socio-environmental licensing has already been started.
In March, Fibria had already restarted the planting of eucalyptus in areas of Espírito Santo, Bahia and Minas Gerais. There will be 19,000 hectares of forest renewal and 21,000 hectares for the re-sprouting of existing stumps. Additionally, 2,700 hectares are to be planted with seedlings of native species in areas set aside for preservation or as legal reserve.
Fibria has also announced that it is to revamp its Aracruz Unit, investing R$ 100 million in optimizing the Fiberline A bleaching system, with the introduction of new equipment and more modern processes that will lower the production cost. At the peak of this project, called Revit-A, some 1,000 jobs will be generated, as well as environmental benefits.
Moreover, Fibria has revised and unified its forest partnership programs. The company has resumed negotiations with farmers in relation to approximately 10,000 hectares of plantations in Espírito Santo and Bahia. And in July 2010 it launched the Forest Reserves program in the regions of the Paraíba Valley and Bragantina, in the state of São Paulo. The new contracts will be added to the 3,863 contracts to supply the company with wood, held at the end of 2009, with farmers in seven different states and representing a total area of almost 115,000 hectares.
In the state of Rio Grande do Sul, where the company has already introduced the Forest Reserves program, Fibria has launched the certification of the Forest to Table program, a pioneering initiative to endorse the sustainable management of crops integrated within the eucalyptus plantations.
Sustainability
The global leader in a business that is based on renewable forest resources, Fibria has, right from the start - with the declaration of its mission, vision and values - made a commitment to assuming the best corporate governance practices and socio-environmental responsibility.
As a demonstration of this commitment, between September and December 2009, the company implemented the “100-Day Plan”. Most of the activities under this action plan were focused on the forest base, and particularly on greater involvement with the various neighboring communities. As a result, Fibria obtained FSC forest certification for the Três Lagoas Unit, which had already been certified by Cerflor. The forests in Espírito Santo and Bahia are in the process of preparation and planning for FSC certification in the next few years.
The company’s forest base covers a total area of one million hectares, of which 393,000 have been set aside for permanent preservation. Fibria has three RPPNs (Private Natural Heritage Reserves) in Espírito Santo: the Restinga de Aracruz (one of the few preserved areas of arboreal restinga along the northern coast of the state), Mutum Preto and Recanto das Antas. In 2009, applications were registered for the formal recognition of three more RPPNs within the Atlantic Forest and Pampa biomes (São Sebastião do Ribeirão Grande/SP; Torrinhas/RS; and Esperança do Beija-Flor/BA).
On the same topic of sustainability, one of the highlights during this first year of activities was the setting up of the Sustainability Committee, comprising members of the Board of Directors, Executive Officers and outside advisors, for the purpose of defining values applicable to all areas of the company.
Fibria also released its first Sustainability Report, showing the company’s challenges and accomplishments in the economic-financial, social and environmental spheres. The document follows the model set out by the Global Reporting Initiative (GRI G3), an organization that is the leading global benchmark for methodology and determines the principles to be adopted: precision, clarity, the inclusion of stakeholders, and materiality, among others.
