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Lenzing and Duratex to build dissolving wood pulp plant in Brazil
BRAZIL (News release) -- The Lenzing Group and Duratex will build a 500,000 tons dissolving wood pulp plant in the State of Minas Gerais, Brazil. The start-up is planned for the first half of 2022.

In the joint venture, Lenzing holds a 51%, Duratex a 49% stake. The expected industrial CAPEX will be approx. USD $1.3 billion (based on current exchange rates and customary tax refunds). The project is financed through long-term debt. The corresponding financing contracts are expected to be concluded at the end of the 1Q 2020.

In planning the new production facility, particular importance was given to sustainability aspects. The joint venture secured FSC®-certified plantations covering an area of over 44,000 hectares to provide the necessary biomass. These plantations operate completely in accordance with the guidelines and high standards of the Lenzing Group for sourcing wood and pulp. The plant will operate among the highest productive and energy-efficient in the world and will feed the 40% of excess bioelectricity generated on site as "green energy" into the public grid. With this project, Lenzing sets a milestone in its strategy to carbon neutrality.

Lenzing Group is the world market leader for wood-based cellulosic fibers.

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