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Management Side
Suzano to Invest R$1.66 Billion in New Tissue Paper Mill, Expand Fluff Pulp Capacity and New Biomass Boiler

SÃO PAULO (News release) -- Suzano, the world's largest producer of market pulp, announces on October 26th a series of projects aimed at expanding its installed production capacity and which will enhance its operational efficiency. It will invest R$650 million in the construction of a tissue paper mill in Espírito Santo, where it will also invest R$520 million to replace a biomass boiler. The company will also invest R$490 million to expand the supply of fluff pulp in São Paulo.

The total investment of R$1.66 billion, announced during the disclosure of the 3Q23 results, is aligned with Suzano's strategic business avenues and underscores its commitment to constantly adapt its operations to evolving demand in Brazil and the global markets.

"Suzano's competitive edge in the production of sanitary papers and fluff pulp, and the long-term growth of these markets driven by changes in consumption habits, underpin the strategy of strengthening our presence in these segments. We are the leaders in the Brazilian tissue paper market and pioneers in the production of fluff pulp from eucalyptus, which is why we must always be ready to serve our customers," says Walter Schalka, CEO of Suzano.

The new fluff- and tissue-based products will reach the market by the end of 2025 and in 1Q26, respectively, and will add 340 thousand tons of fluff and 60 thousand tons of tissue to Suzano's production capacity.

The third investment announced represents another phase in the process of modernizing its Aracruz Unit. The new biomass boiler will make the mill more efficient and stable, resulting in environmental gains for the operation. The boiler is slated to go operational in 4Q25.

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