Suzano announces billion-dollar investment in new tissue paper mill in Brazil
With its new strategically located plant, the company reaches an annual installed capacity of 340 thousand tons of tissue
This Thursday, the 26th, Suzano announced an investment of R$1.17 billion in its consumer goods business with a new tissue paper mill in Aracruz (Espírito Santo) and a new biomass boiler. According to CEO Walter Schalka, the investment aims to expand and modernize the company’s operations in this segment.
The construction of the new mill will receive an investment of R$650 million, with an installed capacity of 60 thousand tons of the Neve and Mimmo brands, with one paper machine and two for converting toilet paper and paper towels. “The facility will produce the two most iconic brands”, commented Luis Renato Bueno, executive director of consumer goods at Suzano, in a conversation with journalists.
With the new venture, Suzano reaches an annual installed capacity of 340 thousand tons of tissue, having its seventh plant strategically located to serve the regional market. According to Bueno, the unit will bring more speed to customers and less logistics costs for the company.
Focusing on the Southeast region, the plant should supply the homes of 10 million people per month between Espírito Santo, Minas Gerais, Rio de Janeiro and São Paulo, and will also allow the company to expand its presence in the premium segment.
Furthermore, the company announced an investment of R$520 million in a new biomass boiler, with the aim of generating more renewable energy in its operations. The boiler is slated to go operational in 4Q25.
The company had already announced plans to install the mill and will use the balance of ICMS (Tax on Circulation of Goods and Services) credits it has in the state in the project, so that the estimated net disbursement will be R$130 million.
INVESTMENT OF R$490 MILLION TO EXPAND FLUFF PULP CAPACITY
The company also announced it will invest R$490 million (approximately US$100 million) in a new fluff pulp line.
The new capacity will enable Suzano to meet rising global demand and improve sustainability standards for absorbent, personal hygiene products, including baby and adult diapers, feminine hygiene, and pet pads.
This investment will support the conversion of a BHKP pulp line at Limeira mill into a flex machine to produce Suzano’s Eucafluff® or BHKP. Suzano’s annual installed capacity of fluff pulp production will increase from 100,000 to 440,000 ton, with production expected to begin by Q4 2025.
“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.
