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Fibria’s Expansion of the Três LagoasMill

Sao Paulo, Brazil, South America 14 January 2014 -- Further to the ongoing feasibility studies for the implementation of a new fiberline at its Três Lagoas (Mato Grosso do Sul state), on Monday (January 13th), Fibria – Brazil’s world eucalyptus pulp market leader – sat down with 150 representatives of 36 suppliers of pulp industry equipment. The purpose of the meeting was to invite them to participate in the current phase of the project, which should be submitted for approval by the company’s Board of Directors of Fibria before the end of the first half of this year.

The Fibria's new fiberline in Três Lagoas is expected to have an installed capacity of 1.75 million tons a year. This would bring the unit’s total annual production to 3.05 million tons, making it the largest pulp mill in the world – a position currently occupied by Fibria’s Aracruz Unit (Espírito Santo state), where there are three production lines.

Fibria installed its first fiberline at Três Lagoas, with an annual production capacity of 1.3 million tons, in 2009, thus pioneering pulp production in a city which is now considered to be the world’s pulp capital.

Fibria, whose focus is on disciplined growth, intends to take advantage of what it sees as a window of opportunity for setting up new pulp production capacity, subject to market conditions. Fibria’s CEO, Marcelo Castelli, said that "We are planning for the new fiberline to come into operation at the beginning of the fourth quarter of 2016, when we believe there will be room additional supply to the market, if the current fundamentals continue to apply".


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