Project Star expansion announced at press conference presided by São Paulo Governor João Doria at Bandeirantes Palace; expansion will generate 7,500 direct and indirect jobs and is expected to be completed by 2021
Singapore, July 29, 2019 – Bracell Group, which is part of Singapore-based RGE, presented details of the R$ 7 billion expansion known as Project Star to increase manufacture of dissolving pulp underway in the state of São Paulo this afternoon. The presentation of the expansion project in the city of Lençóis Paulista was delivered to the governor of São Paulo, João Doria, with journalists at an event held at the Bandeirantes Palace.
Due for completion by the end of 2021, Project Star represents the largest private investment in the state of São Paulo in the last 20 years.
The epicenter of the investment will be concentrated in the municipalities of Lençóis Paulista and Macatuba, but it will also create job opportunities in the nearby cities of Agudos, Areiopolis, Bauru, Pederneiras, São Manuel, Barra Bonita, Jaú and Igaraçu do Tietê.
Over a two-year period, Bracell’s São Paulo expansion project will employ about 7,500 workers during the peak of the project, with an average of approximately 3,500 workers. Upon completion, the operation phase will employ around 2,100 direct workers and 1,900 outsourced workers permanently in the factory and forestry activities.
“For this project to come to life, we want to work with the best talent and technology available in the world and, fortunately, we are confident that this talent is based here in Brazil,” says Pedro Wilson Stefanini, director of Bracell São Paulo. He emphasized that opportunities will be generated not only in the area around the mill, but also in forest activities present in about 50 municipalities across the state of São Paulo.
Bracell has been present in Brazil for more than 15 years through its operations in Camaçari (BA), and began the ambitious expansion project by acquiring Lwarcel Celulose in August 2018. Expansion work began on the former Lwarcel plant, located in Lençóis Paulista (SP), in April 2019, and will see its production capacity, focused primarily on dissolving pulp, increase from 250,000 tons/year to 1.5 million tons/year.
The new mill will have a flexible line designed to primarily produce dissolving pulp and will feature best-in-class technology. Among the key innovations is a bio-refinery that controls material inputs to maximize recycling, minimizes waste, and greatly reduces the environmental footprint, resulting in low water consumption, low emissions and limited fossil fuels.
“Our ambition is not only to be one of the largest dissolving pulp operations in the world, but also one of the most socially and environmentally responsible companies. In addition to creating jobs and career opportunities for thousands of people in Brazil, we will set the highest standards for sustainable use of renewable resources,” says Carlos Pastrana, director of the expansion project.
When the expansion project is completed, Bracell’s total production capacity across its operations in Bahia and São Paulo will be approximately 2 million tons of dissolving pulp per year.
Dissolving pulp is one of the key ingredients used to create a wide range of products, from textiles, baby wipes and eyeglass frames to sausage packaging and pharmaceuticals, as well as industrial products such as high performance tire cords.
Bracell is one of the largest producers of dissolving pulp and specialty cellulose in the world, with two main operations in Brazil in Camaçari, Bahia, and Lençóis Paulista, in São Paulo. When the São Paulo expansion, known as Project Star, is completed by late 2021, Bracell will have an annual production capacity of approximately 2.0 million tons of dissolving pulp and will employ approximately 7,500 direct and indirect employees. In addition to its mill operations in Brazil, Bracell has a management office in Singapore and sales offices in Asia, Europe and the United States.
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