Lenzing creates joint venture to build largest pulp plant in the world in Brazil
The Austrian cellulosic fiber producer and Duratex will jointly open a pulp plant in Brazil by 2022. The factory will cover an area of 44,000 hectares and produce up 500,000 tons of wood pulp annually.
Lenzing invests to build largest pulp plant in the world. The Lenzing Group, world market leader for wood-based cellulosic fibers, and Duratex, the largest producer of industrialized wood panels in the southern hemisphere, they will build a pulp plant covering an area of 44,000 hectares, in Minas Gerais, near Sao Paulo (Brazil).
The plant will produce up to 500,000 tons of wood pulp annually and the investment amounts to $1.3 billion. In the joint venture; Lenzing holds a stake of 51% and Duratex 49%. The startup is planned for the first half of 2022. The Austrian group says the new dissolving wood pulp plant strengthens the Lenzing Group’s backward integration and cost position as well as its specialty fiber growth in line with its sCore TEN corporate strategy.
“Wood-based cellulosic fibers offer an important contribution to enhance sustainability in the textile industry. With this investment, we will become more competitive, act more independently and subsequently strengthen our market position.” States Stefan Doboczky, CEO of the Lenzing Group.
The plant located near Sao Paulo will produce up to 500,000 tons of wood pulp annually
The plant will function 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. The plant Lenzing group terminated its second quarter with a revenue of 1.1 billion dollars and Duratex closed its third quarter with 3 million dollars.
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