This is the second of two Inside RGE posts covering RGE Founder and Chairman Sukanto Tanoto’s keynote address to a visiting group of MBA students from the Wharton School of...
Representing the largest private investment in the state of São Paulo, Brazil in the past decade, Bracell’s R$ 7 billion (USD 1.75b) dissolving pulp expansion project was announced to the media at Bandeirantes Palace on 29 July 2019. Noting its positive impact in the state and boost to Brazil’s international competitiveness, the investment was lauded by São Paulo Governor João Doria, who presided over the media conference.
Known as ‘Project Star,’ the investment is largely concentrated in the municipalities of Lençóis Paulista and Macatuba, but will create significant employment opportunities in nearby cities Agudos, Areiopolis, Bauru, Pederneiras, São Manuel, Barra Bonita, Jaú and Igaraçu do Tietê. Further contributing to the economic vibrancy and prosperity in the region, there will also be partnerships with state technical schools to develop talents for the industry.
Due for completion by end of 2021, the expansion will employ 7,500 workers at the project’s peak, with an average of approximately 3,500 workers. When completed, the operation phase is estimated to employ around 2,100 direct workers and 1,900 outsourced workers permanently in factory and forestry operations.
Having operated in Brazil for more than 15 years, Bracell kicked off its expansion project with the acquisition of Lwarcel Celulose in Lençóis Paulista in August 2018. The mill, now renamed Bracell São Paulo, will increase its annual production capacity of dissolving pulp from 250,000 tonnes to 1.5 million tonnes. When the expansion is completed, Bracell’s total production capacity across its operations in Bahia and São Paulo will be approximately 2 million tonnes of dissolving pulp per year.
Supported with best-in-class technology, the new mill will have a flexible line designed to primarily produce dissolving pulp. Among the key innovations is a bio-refinery that controls material inputs to maximise recycling, minimise waste and greatly reduce the environmental footprint, resulting in low water consumption, low emissions and limited use of fossil fuels.
Company of the Year
Bracell continues to capture attention not only for its aggressive growth plans but also its commitment to be an ‘employer of choice’. Shortly after concluding its recent rebranding, Bracell was voted Company of the Year in a poll of over 800 residents by Lençóis Paulista newspaper O ECO. This award represents Bracell’s focus on continuous improvement as a company, corporate citizen and employer of choice. Congratulations!