Eldorado Brasil Applies for Credit Line
Mato Grosso do Sul, Brazil, South America 10 September 2013 -- Eldorado Brasil plans to expand the capacity of its pulp mill in Mato Grosso do Sul. A new pulp line shall start operation in 2017, bringing the total capacity of the site to 3.5 million t of BEKP.
Brazilian pulp manufacturer Eldorado Papel e Celulose Ltda. (Eldoradoo Brasil has taken the first steps towards expanding its Três Lagoas production facility in the Brazilian state of Mato Grosso do Sul. On 6 September, the company submitted an application for a BRL1.4bn (€460m) credit line to Brazilian development fund Fundo de Desenvolvimento do Centro-Oeste (FDCO). According to Eldorado Brasil, the credit corresponds to 20% of the total investment volume which the company has earmarked for a second pulp line with an annual capacity of 2 million t of bleached eucalyptus pulp at Três Lagoas. The total cost of expansion is estimated at BRL7bn (€2,3bn) which exceeds Eldorado Brasil's initial investment in its first production site. A relative newcomer to the industry, Eldorado plans to commission the new line in 2017 after which the site will have a total capacity of 3.5 million t of BEKP.
Eldorado Brasil's first facility was commissioned in November 2012 and is meanwhile running at full capacity, the company informs. Eldorado Brasil is owned by Brazilian meat processing giant JBS S.A. which has invested over BRL 6bn (€2bn) in the pulp complex. Plans of the company's CEO for 2020 envisage the start of a third pulp line.