The world’s largest pulp production line is expected to come online in the coming weeks
Suzanne , the world’s largest pulp producer, which celebrates its centenary this year, announces its financial results for the first quarter of 2024 (1Q24). The highlight of this period is the progress of the Cerrado project, the largest investment project ever carried out by the company. The new pulp mill, under construction in the municipality of Ribas do Rio Pardo, in the state of Mato Grosso do Sul, is now 94% complete and will be operational in a few weeks. It will be the largest single-line pulp mill in the world.
With a total planned investment of 22.2 billion BRL, of which 19.1 billion has been deployed by the end of April, the new mill will have an annual production capacity of 2.55 million tons of paper pulp , used in the production of sanitary papers and sanitary napkins, printing and writing papers and packaging papers, etc.
Given the cumulative impact of investment in mill construction and lower pulp prices in recent quarters, Suzano’s quarter ended with dollar leverage of 3.5 times, within the limits set by company policy.
“This is a transformational project in the history of Suzano, which marks an important new cycle of value creation for the company. With this new unit, Suzano celebrates its centenary by being even better prepared to grow and share benefits with its stakeholders,” said Walter Schalka, CEO of Suzano.
The results also show the recovery trend in international pulp prices and the stability of production costs compared to the previous quarter, as well as seasonal effects on sales in the sector. Suzano’s adjusted EBITDA amounted to BRL 4.6 billion, while operational cash generation amounted to BRL 2.5 billion. Net sales for the quarter were BRL 9.5 billion. Suzano recorded a net income of BRL 220 million. The quarter ended with net debt of $11.9 billion, including Suzano’s share repurchase program and equity interest payments during the quarter.
The cost of pulp production, excluding downtime, amounted to BRL 812 per tonne at the end of the quarter. Pulp sales totaled 2.4 million tonnes, while paper sales reached 313,000 tonnes.
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