Bracell’s journey continues after 21 years: O Papel

This article has been adapted from “Bracell invests in a journey that began more than two decades ago and consolidates the competitiveness of Brazilian manufacturing units”, published by O Papel. You can read the original here 

A global leader in the production of dissolving pulp, Bracell celebrates the milestones and achievements of its 21-year trajectory in Brazil. The two decades of presence in the country have resulted in investments of more than US$ 6.5 billion, leading to competitive and diversified operations.

“In 2003, the company began operations in Brazil with the acquisition of Bahia Specialty Cellulose (BSC) and Copener Florestal, in Bahia. In 2018, we expanded our operations with the acquisition of Lwarcel Celulose, in São Paulo. In 2021, we inaugurated the mill in Lençóis Paulista-SP, considered the largest and greenest in the world, with a production capacity of 1.5 million tons/year of dissolving pulp and up to 3 million tons/year of kraft pulp. Last year, we entered the tissue paper market with the acquisition of OL Papéis, in the Northeast. In the first half of this year, part of the new tissue mill in Lençóis Paulista began operations – when fully operational, its annual production capacity could be up to 240,000 tons. Later in 2024, we will expand the Santos-SP Port Terminal,” summarizes Luiz Dutra, Bracell’s Vice President of Corporate Affairs, on the company’s more than 20 years of growth.

Bracell is part of the RGE Group, which has more than 80,000 employees worldwide and believes in creating shared value throughout its value chain. “We have as our pillars the 5 Cs, which means that it will only be good for Bracell if it is good for the community, the country, the climate, and the customers. Moreover, the company is committed to making a difference in every detail, generating value for all stakeholders, including the development of our people,” emphasizes Dutra. “We are in full expansion in Brazil and will continue with our mission to improve people’s lives by developing resources sustainably,” he adds.

In the last three years (2020-2022), details Dutra, the company has invested more than R$ 11 million in Bracell Social projects, focusing on education, income generation for communities, and valuing local and traditional culture. “In 2023, more than R$ 9 million were invested in projects in education, empowerment, and well-being through Bracell Social. As a result, more than 164,000 people were benefited by the projects we support and/or develop, just last year,” he highlights.

With integrated production, Bracell has forestry operations in the states of São Paulo, Bahia, and Sergipe, all focused on continuous improvement and sustainable development. “At Bracell, the objective of forest management is to supply the industrial units with high-quality eucalyptus wood at a competitive cost while taking care of the social and environmental aspects of its area of influence. We use the best practices for soil conservation, biodiversity protection, and water resource management,” points out Mauro Quirino, Bracell’s Forestry head.

According to the executive, to manage the forests with the most modern approaches and technologies, Bracell relies on programs and actions developed in universities, research institutions, and with other companies in the sector that contribute to the establishment of sustainable forest management practices. “As with our operations throughout the country, our eucalyptus planting is expanding. We started forest operations in 2003 in Bahia, and in 2018 in São Paulo, and have been operating in Sergipe since 2022, generating jobs and income in these regions and contributing to economic development,” recalls Quirino.

Gabriel Dehon, head of Forestry R&D at Bracell, states that the company invests significantly in Forestry Research and Development (R&D) to ensure the sustainable supply of wood in the long term. “The primary mission of Forestry R&D is to increase forest productivity (m3/ha/year and tsa/ha/year), promoting faster tree growth and better wood quality. We have an intensive eucalyptus classical breeding program and strong development of sustainable silvicultural practices related to soil preparation and fertilization, climate monitoring, and integrated pest, disease, and weed management,” he said.

Focusing on the segment of dissolving pulp and specialty dissolving pulp, Guilherme Araújo, Bracell’s General Manager in Bahia, reveals that the mill has an installed capacity of 500,000 tons, with 60% specialty pulp and the remaining 40% dissolving pulp – while the latter is mainly used for viscose production, the specialty dissolving pulp is especially used in pharmaceuticals, cosmetics, and cigarette filters.

Bracell’s Project Star includes the world’s first fossil fuel-free pulp mill

Araújo also mentions that Bracell’s mill in Bahia has stood out for its investments in process and product R&D, aiming to grow in the specialty dissolving pulp segment and transforming the unit into a 100% producer of this raw material. “We are investing R$ 300 million this year and next, with part of this amount being allocated to the new cooking plant of line 1 and the rest to projects to improve the performance of line 2, aiming at improving the quality of the final product and increasing operational performance,” he details. “It is an excellent opportunity to establish ourselves as a major player in the specialty dissolving pulp market, offering our customers a reliable supply and providing differentiated performance. It is also an opportunity to diversify our specialty dissolving pulp portfolio,” says Bracell’s General Manager in Bahia.

The Lençóis Paulista mill stands out as the most modern and sustainable plant, with an annual production capacity of 1.5 million tons of dissolving pulp and up to 3 million tons of kraft pulp. “The pulp and paper market is booming, and we always seek to add value to our business. It is worth mentioning that production flexibility is a considerable advantage. The decision for each type of production is related to market demand,” says Dutra.

This is not the only differentiator that makes the Lençóis Paulista unit a highlight in the sector. The mill operates without the use of fossil fuels and has a biomass gasifier as a renewable energy source. The unit also has the world’s largest recovery boiler and the lowest water consumption in the industrial sector, capturing rainwater and treating tertiary effluents, being a pioneer in the sector. The mill is self-sufficient in electricity, with a substation with an installed capacity of 409 MW, with the surplus available on the national grid. “With investments in technology, we have a 24-hour monitoring center with artificial intelligence technologies for harvesting, industry, and forest and pulp logistics. The unit also has a monitoring center for fire prevention and fighting,” lists the VP of Corporate Affairs.

Bracell Papéis’ newly inaugurated mill in São Paulo is positioned among the largest current tissue paper projects in Latin America, with an estimated annual production capacity of 240,000 tons. Fully integrated with the pulp mill, the plant is considered the most sustainable operation in the Latin American tissue sector, with fossil fuel-free operation. The unit has 70,000 m2 of solar panels, generating 9 MW of green energy (25% of the tissue mill). Through the use of state-of-the-art technology, the mill has several other differentiators that contribute, especially to environmental preservation, reaffirming one of Bracell’s major commitments.

In addition to the differentiators of the 100% automated and fossil fuel-free operation, there are zero carbon monoxide emissions into the atmosphere and lower water and energy consumption compared to other factories in the market. Furthermore, Bracell Papéis has the entire pulp production chain in its operations, allowing the company to offer more affordable products with superior quality, resulting from the high technology implemented in the production process and exclusive 3D embossing.

Bracell Papéis, in the Northeast, is receiving investments of R$ 100 million – half of which will be allocated this year and the other half in the coming years – in operational modernization and the acquisition of a new conversion machine, as well as the implementation of an organizational culture focused on operational excellence and high productivity, as anticipates Eduardo M. Aron, General Manager of Bracell Papéis.

Positive outlooks on the tissue market also guide Bracell’s strategic planning concerning the segment. “Certainly, there is room for expansion, especially for players with significant national and global growth potential like Bracell Papéis. The Brazilian population consumes about 6 kg per capita per year, while in countries like the United States, this volume is 26 kg per capita per year, indicating room for growth and offers with more benefits and added value,” explains Aron.

Regarding products, Bracell Papéis offers a complete portfolio of single and double-ply toilet papers (Familiar and Velud), paper towels (Absoluto), paper napkins, and diapers (Fofura), all 100% developed with high-quality pulp. Attentive to market demands, the company is launching the premium toilet paper line Supra, which offers consumers a different performance standard, very close to the quality offered in more advanced markets.

Bracell’s brands now include Familiar toilet paper

Bracell 2030 outlines commitments to ESG

Based on the belief that the cultivated tree sector has a promising path by solidifying its practices based on ESG (Environmental, Social, and Governance) criteria, Bracell understands sustainability from end to end, covering all stages of the value chain. “The company seeks to make a difference in every detail and is based on the philosophy that everything it does must be good for the community, the country, the climate, and the customers, a concept we define as 5 Cs”, highlights Márcio Nappo, Vice President of Sustainability at Bracell. “This means that the company is committed to the sustainable development of all its operations, processes and activities and, to this end, invests time and resources focused on continuous improvement, seeking to adopt the best socio-environmental and ethical practices,” he says.

A highlight of the company’s sustainability plan is the One for One Commitment, an unprecedented initiative in Brazil aimed at supporting the protection and conservation of biodiversity. Through it, Bracell will contribute to the conservation of areas of native vegetation equal in size to the company’s eucalyptus plantation areas: for each hectare of eucalyptus planted, Bracell commits to the conservation of one hectare of native vegetation. In addition to preserving native forests in the forest management areas under Bracell’s management (both its own and third-party areas), the Commitment also supports the conservation of public areas through partnerships with the governments of the states where the company operates.

Training and learning programs extend to local communities

Currently, Bracell employs over 11,000 employees in its industrial, forestry, and logistics activities – considering indirect workers, the total workforce exceeds 25,000 professionals. Fernanda Kruse, Head of Training and Development at the company, states that the 5 Cs philosophy is the foundation for all teams and permeates all projects led by the company. “In addition, we have our fundamental TOPICC values, which are characterized by Complementary Team, Ownership, People, Integrity, Customer, and Continuous Improvement. In this way, we direct our efforts together with our employees to build a solid and effective culture. We also have our QPC, which guides our deliveries and projects aiming for Quality, Productivity, and Cost,” she describes.

Detailing practical examples that characterize the company’s organizational profile, Fernanda reveals that, in 2023, the Lençóis Paulista unit inaugurated the Bracell Learning Institute, which seeks to connect people and the company’s purposes. “With an incentive for development and qualification, based on investment in people, we carry out training and learning programs so that professionals have opportunities for career progression. Programs for our first-level leadership, coordination, and supervision levels, and programs for our executives, in partnership with ISE Business School and INSEAD Singapore, are among the examples. For our Operations employees, we have the Passport program, whose objective is to provide knowledge of the development/training path for each employee, as well as training and partnerships with the community, in order to promote collective growth.”

These initiatives generally also involve Bracell’s units in Bahia. In the state, the company also maintains the Acelera Program, with a duration of six months, which aims to promote the hiring and training of new employees with the acquisition of multiple knowledge about the entire dissolving pulp production process, strengthening the region and contributing to entry into the labor market. The program has as partners the National Industrial Apprenticeship Service (SENAI) and the Superintendence of Professional and Technological Education (SUPROT). Currently, 20 young people are participating in the initiative in the company’s industrial area in Camaçari, Bahia.

Mauro Peixoto, Senior Human Resources Manager, emphasizes that Bracell also has as one of its values contributing to the development of the region. “To do this, we believe in investing in people, conducting training and promoting learning programs in local communities so that they have opportunities for career advancement,” he comments and reinforces that Bracell is a company that invests in technology and innovation, always combined with business sustainability. “An example is the data from the General Registry of Employed and Unemployed (CAGED), released by the Ministry of Finance at the beginning of this year, in which the municipality of Lençóis Paulista, where we operate, stood out in job creation and income in the 2023 balance, ranking 15th in the State of São Paulo with formal jobs and highlighting the industry.”

According to Peixoto’s assessment, the positive balance represents a growth of 16.19% in the number of employees with signed work contracts in the municipality, compared to the number observed at the end of 2022, and the area with the most employment in the city is industry. This sector was also the one that grew the most in 2023, with a variation of 23.73% in stock compared to 2022. “We actively contribute to these numbers, as among the training and operational development actions offered are courses for training drivers, mechanics, and forest machine operators. In addition, we understand the importance of a strong industry, considering the current scenario. Together with the teams, we have technologies and projects applied in industry and the field using Artificial Intelligence, drones, and software in search of continuous improvement and strengthening our operations,” he concludes.

Bracell has a strong commitment to people development

Another highlight is the Chega Junto – Trainee entry program. The last edition, in 2023, showed a growth of more than 100% in the number of applicants: 17,000 compared to 8,500 applicants the previous year. “For 18 months, students had a schedule of workshops and mentoring that will contribute to their development, including experiences in industrial, forestry, logistics, and administrative processes and operations of the company,” says Peixoto.

The initiative was launched in 2022 and the goal is for the company to reach 92% of the target by 2025. That is, 0.92 hectares of conservation for each hectare of eucalyptus planted. Within the scope of the One for One Commitment, Bracell helped to conserve and protect 105,000 hectares of Public Environmental Protection Areas in 2023 in the states of São Paulo and Mato Grosso do Sul.

According to Nappo, Bracell recognizes its responsibility to protect the environment and, therefore, in addition to already having a strong focus on sustainability, launched the Bracell 2030 roadmap at the end of 2023, with ambitious goals and commitments aligned with the UN’s Sustainable Development Goals. “Through the concrete actions of Bracell 2030, we can build a better future for the paper and pulp industry in Brazil, positioning Bracell as one of the leading voices in sustainability in our sector,” he says.

Fourteen new commitments and goals have been assumed for the next seven years, divided into four pillars: climate action; sustainable landscapes and biodiversity; sustainable growth; and empowerment of lives. For each of them, there is a series of objectives to be met, such as a 75% reduction in carbon emissions per ton of product; removal of 25 MtCO2eq from the atmosphere between 2020 and 2030; support for the conservation of 230,000 hectares of native vegetation in public areas, carrying out actions to protect and conserve public conservation units in the Atlantic Forest, Cerrado, and Caatinga biomes; support for at least ten partnerships or research projects per year on biodiversity conservation; a 47% reduction in water consumption per ton of product; a 90% reduction in the sending of solid waste to landfills per ton of product, among others.

Extending the responsible action to people and communities, Nappo informs that Bracell wishes to promote equality of opportunities for all. “We want to reach at least 30% of women in leadership positions at Bracell by 2030,” he says, about one of the goals underway. “In local communities, which we support with Bracell Social, we will promote women’s entrepreneurship. To this end, at least 60% of social business impact projects (small business projects in the communities) supported by the company must be led by women. In addition, the upcoming Bracell 2030 goals focus on income generation and quality public education in local communities. We want to increase by at least 20% the income of families participating in income generation projects promoted in priority areas and increase by 30% the proficiency in Portuguese and Mathematics in public schools supported by Bracell in areas with low learning indexes,” he cites other examples of actions promoted by the company.