Paracel, the Paraguayan company controlled by the Zapag group, is looking for a partner for its pulp project, which already has more than 100,000 hectares of eucalyptus planted. According to industry and financial market sources, Suzano and Bracell, owned by Singapore’s Royal Golden Eagle (RGE), have evaluated the assets.
People who are aware of the negotiations say that the Paraguayan group would be willing to sell 51% of the business. Rabobank, a bank specializing in agribusiness, is advising on the operation, but declined to comment.
The project, valued at US$4 billion considering the industry, faces challenges in raising funds. Paracel’s largest shareholder, the Zapag group operates in sectors such as real estate, fuel distribution, ethanol production and river logistics. The Austrian Heinzel and Swedish Girindus groups are also partners in the initiative.
Initially planned to produce both eucalyptus kraft pulp and dissolving pulp, the Paracel plant, with a projected capacity of 1.8 million tons per year, will have a line entirely dedicated to kraft pulp, according to a decision taken after engineering studies.
The sale of a stake in the company returned to the agenda in the last quarter of 2023, with the support of the Paraguayan government. However, there is no guarantee that the operation will go ahead. According to a source, potential buyers have been approached, including Asia Pulp & Paper (APP), part of the Jackson Wijaya group, which owns Paper Excellence, but they have not shown any strong interest.
In recent days, rumors in the sector have gained strength, indicating that a large Brazilian company has already decided to acquire 51% of Paracel. When contacted, Paracel, Suzano, Bracell and APP did not comment on the matter.
