BRAZIL -- Fibria announced that its board of directors has OK'd the expansion plan of the Company consisting of the construction of a new line of pulp production in the city of Três Lagoas, state of Mato Grosso do Sul, called Horizonte 2 Project.

The Horizonte 2 Project consists in the construction of a new bleached eucalyptus pulp production line with capacity of 1.75 million tons per year and an estimated investment of US $2.5 billion. The start-up of the new production line is projected for the fourth quarter of 2017.

Fibria said that the project will be financed by the free cash flow of the Company and financing, in accordance to the limits established on the Indebtedness Management Policy.