At the head of Suzano for a decade, Walter Schalka said that to remain competitive, the company works to have a “startup face”. In January 2023, the company completed 99 years of activity, having reached the mark of the largest eucalyptus pulp manufacturer in the world.
The company’s anniversary took place in a context of positive results throughout 2022, with the high price of pulp on the market. However, prices are expected to gradually retreat this year, and Schalka says the company is prepared for that change. “The important thing is the cost protection we have”, declared the executive.
Furthermore, for Suzano’s president, innovation and sustainability are the main features that translate the company’s DNA during these 99 years and will continue during the next century. “A lot of people have come out to talk about ESG recently. This was already a reality at the company”, mentioned the CEO.
MARKET ANALYSIS
In an interview with the Brazilian newspaper Estado de São Paulo, the president of Suzano analyzed the future of the pulp market, in relation to the last year, in three variables – demand, supply and stock.
“Demand has been positive and I believe it will continue to be. China must go through a process of growth, with an injection of capital from the government. Europe and the US are experiencing high demand. On the supply side, there will be an increase in the short term, with the Arauco plant in Chile and UPM in Uruguay. The third variable is inventory. Stocks are low. There will be a spare time. If there is an imbalance, there may be a drop in prices. We are very calm because we have gone through cycles of high and low prices countless times”, emphasized Schalka.
To deal with macroeconomic issues and their constant changes, Walter claims that two issues are non-negotiable: robustness and flexibility for rapid adaptation, as no one can predict the next crisis.
ESG AGENDA
Despite this, the executive believes that it is possible for companies to remain profitable and still aligned with ESG values.
“If we think that ESG will take away value from companies or make them unprofitable, there is something wrong with the world. We have two serious problems in global society. One is the climate crisis. We are eight billion people and we must have a collaborative agenda. The second is inequality of opportunity. It is not possible to have a smaller and smaller group of people, each time richer, and an increasingly larger group of poor people. It is not possible to have a society where women and blacks do not have the same opportunities as cis whites”, declared the president of Suzano.
OTHER BUSINESS
The executive also commented that each Suzano business has a high level of autonomy and growth strategy. “We also have a corporate investment arm in startups. We seek new paths all the time, always delivering value to stakeholders,” said Schalka.
Among Suzano’s businesses, tissue has grown considerably in the last four years ago – when the company started in the segment. Currently, the company is leader in the North and Northeast of Brazil, in addition to having acquired the operation of Kimberly-Clark, occupying the first position also in São Paulo state.
In addition, in its pulp mix, the company still produces fluff pulp, for diapers and sanitary pads. “They said that short fiber fluff pulp couldn’t exist in the world, that it was a 100% softwood business. We did tests and we thought it could be done. Today, the market wants to migrate to short fiber and we have no more capacity”, said Schalka.
