BRAZIL (From news reports) -- Fibria SA, the world's largest producer of eucalyptus pulp, raised the output forecast for its Horizonte 2 plant.

Chief Executive Marcelo Castelli told investors on a call Tuesday that the Horizonte 2 plant in central-west Brazil will produce 1.95 million metric tons of wood pulp at full capacity, up from a forecast of 1.75 million metric last year.

Horizonte 2 is one of several major wood pulp projects coming online in Brazil over the next few years, underscoring its competitiveness as a commodity exporter and threatening to undercut rebounding pulp prices from Europe to Asia.

The new Fibria plant, along with rival Klabin's Puma Project and Eldorado Brasil's Tres Lagoas expansion, represent some of the biggest active capital spending projects in Brazil, where a recession has hammered domestic demand but encouraged exports through a weaker currency.