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Fibria Invests in Forming the Três Lagoas Forest Base

São Paulo, Brazil, 16 August 2010 -- Fibria has resumed its growth trajectory and announces new investment for the formation of a forest base, before the start up of Três Lagoas Unit II, in the state of Mato Grosso do Sul, which has been brought forward from 2016 to 2014, depending on market conditions.

The expansion project provides for the construction of a new fiberline, beside the existing one (Três Lagoas I), with a nominal capacity of 1.5 million tons a year, with the possibility of reaching 1.75 million tons in the medium term, through refinements to operating efficiency. The project will require a total investment of about BRR 5.8 billion, and the socio-environmental licensing process has already begun.

The project will require 150,000 hectares of planted forest, 50% of which will belong to the company and 50% will be owned by third parties, under leasing and partnership arrangements. The total investment for the formation of the forest base will be about BRR 1.8 billion. The company already has an excess of 30,000 ha in the plantations serving Três Lagoas I and is finalizing the leasing of another 45,000 ha this year, in addition to negotiating the purchasing of wood. The other 75,000 ha will be ensured through land purchasing and leasing agreements over the next few years. The project will generate approximately 2900 jobs, including the company’s own and outsourced employees.

Carlos Aguiar, Fibria’s president, stated that this project marks a new phase of growth for the company. “Três Lagoas II forms part of Fibria’s long-term vision, which is to reach an annual production capacity of 10.7 million tons of pulp by 2025,” he affirmed. Currently, Fibria’s six units have a combined annual production capacity of 5.4 million tons.


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