Suzano Invests R$490 Million to Expand Fluff Pulp Capacity to 440,000 Tons

SÃO PAULO, October 27, 2023--(BUSINESS WIRE)--Suzano, the world’s largest market pulp producer, today announces 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.

The global fluff market is currently estimated to be 6.4 million tons annually, with a forecasted CAGR of 4,2% for the following years according to independent consultants, fostered mainly by the growth in adult diapers, due to the aging population and a growing middle class using more hygiene products globally.

Eucafluff® is the world’s first bleached kraft fluff pulp made from 100% planted eucalyptus. It is result of nearly 15 years of research conducted by Suzano. Studies and market tests on the application of Eucafluff® in products manufactured by leading global hygiene brands have shown it offers multiple advantages, such as liquid retention (rewet), comfort and discretion.

Suzano’s Eucafluff® is on the list of raw materials authorized for use in disposable personal care products that comply with the EU Ecolabel and Nordic Swan labels. These official European certification schemes recognize products that meet high environmental standards across their full life cycle, including comparatively a reduced fossil energy consumption and carbon emissions, and a lower water consumption and land use than alternatives.

Leonardo Grimaldi, Executive Officer – Commercial Pulp, Fluff and Logistics at Suzano said:

"Suzano is committed in investing in innovative solutions which have a positive environmental impact, bring cost efficiency, and which are scalable businesses. Eucafluff is a perfect example of this. Following many years of R&D, we have been able to pioneer the use of fluff made from planted eucalyptus, which has characteristics that enhances multiple features of our customers’ products. Ongoing projects with several global customers and rising demand for Eucafluff has made us confident that now is the right time to scale up our production."

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Contacts

Hawthorn Advisors
Jamie Plotnek
suzano@hawthornadvisors.com