Bracell Invests BRL5 Billion in Latin America’s Largest Eco-Friendly Tissue Paper Mill, Boosting Local Economy and Sustainability

Bracell recently hosted the Governor of São Paulo, Tarcísio de Freitas, and other authorities to mark the beginning of construction on Latin America’s largest tissue paper mill, located in Lençóis Paulista, São Paulo, Brazil. Demonstrating its commitment to economic growth and sustainability, the company is investing a total of BRL5 billion in the city. Half of this investment will be directed towards the construction of the new tissue paper mill, which is slated to commence operations in 2024. The remaining funds will be used to establish a plant dedicated to the production of key ingredients used in the pulp production process. The BRL5 billion investment will supplement the more than BRL15 billion Bracell has already invested over the past four years in the country.

The state-of-the-art tissue paper mill is expected to be the most productive unit of its type in Brazil. It will integrate Bracell’s commitments to economic, environmental, and community well-being, and will be fully automated and exclusively powered by renewable energy sources. This focus on sustainability will position the mill among the most modern and eco-friendly facilities worldwide.

The Governor of São Paulo, Tarcísio de Freitas (centre), with Bracell President Praveen Singhavi (right) during the groundbreaking ceremony for the new tissue paper mill

Praveen Singhavi, President of Bracell, said, “This project reinforces our commitment to invest in the country, contributing to productivity and sustainability across the business. It is a milestone that makes us very optimistic about our development prospects, as we want to add value and further expand the Tissue downstream operations.”

The new mill will be equipped with four tissue paper production machines, designed to produce two primary products: toilet paper and paper towels. Boasting a production capacity of 240,000 tons per year, the mill will utilize advanced technology in production and digitalization to maximize efficiency, safety, and environmental protection.

The Governor of São Paulo (second from right) accompanied by the President of Bracell (centre), at one of Bracell’s nurseries during his visit

During the construction phase, the project is expected to generate more than 2,000 jobs, while an additional 550 permanent jobs will be created upon its completion. Bracell aims to support local development in the São Paulo region, focusing on fostering economic growth and community well-being.

This investment marks Bracell’s second foray into Brazil’s tissue market. In January, the company signed an agreement to acquire OL Papéis, which operates factories in Feira de Santana and São Gonçalo dos Campos in Bahia, and in Pombos, Pernambuco. The Administrative Council for Economic Defense (CADE) has already approved the project.

The Governor of São Paulo meeting with Bracell employees to learn more about the company’s nursery operations

The Governor emphasized the significance of investments like Bracell’s for the development of São Paulo, stating, “Our mission is to create a favorable ecosystem for large investments like Bracell’s to boost the development of our State. We are proud to have one of the largest and most sustainable pulp mills on the planet, bringing this industry leadership to São Paulo.”

Eduardo M. Aron, Tissue Business Unit Director, Bracell, said, “Through the exchange of raw materials, energy, and water, we will reduce the impacts resulting from our industrial activity, in addition to operating costs.”

This project is aligned with Bracell’s commitment to contribute to the United Nations’ Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and clean energy), SDG 8 (Decent work and economic growth), SDG 12 (Responsible consumption and production), SDG 13 (Climate action), and SDG 17 (Partnerships for the Goals).