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This article has been adapted from “Bracell invests in a journey that began more than two decades ago and consolidates the competitiveness of Brazilian manufacturing units”, published by O Papel. You can read the original here
A global leader in the production of dissolving pulp
Bracell celebrates the milestones and achievements of its 21-year trajectory in Brazil
The two decades of presence in the country have resulted in investments of more than US$ 6.5 billion
leading to competitive and diversified operations
the company began operations in Brazil with the acquisition of Bahia Specialty Cellulose (BSC) and Copener Florestal
we expanded our operations with the acquisition of Lwarcel Celulose
we inaugurated the mill in Lençóis Paulista-SP
considered the largest and greenest in the world
with a production capacity of 1.5 million tons/year of dissolving pulp and up to 3 million tons/year of kraft pulp
we entered the tissue paper market with the acquisition of OL Papéis
part of the new tissue mill in Lençóis Paulista began operations – when fully operational
its annual production capacity could be up to 240,000 tons
we will expand the Santos-SP Port Terminal,” summarizes Luiz Dutra
Bracell’s Vice President of Corporate Affairs
on the company’s more than 20 years of growth
which has more than 80,000 employees worldwide and believes in creating shared value throughout its value chain
which means that it will only be good for Bracell if it is good for the community
the company is committed to making a difference in every detail
including the development of our people,” emphasizes Dutra
“We are in full expansion in Brazil and will continue with our mission to improve people’s lives by developing resources sustainably,” he adds
the company has invested more than R$ 11 million in Bracell Social projects
more than R$ 9 million were invested in projects in education
more than 164,000 people were benefited by the projects we support and/or develop
Bracell has forestry operations in the states of São Paulo
all focused on continuous improvement and sustainable development
the objective of forest management is to supply the industrial units with high-quality eucalyptus wood at a competitive cost while taking care of the social and environmental aspects of its area of influence
We use the best practices for soil conservation
and water resource management,” points out Mauro Quirino
to manage the forests with the most modern approaches and technologies
Bracell relies on programs and actions developed in universities
and with other companies in the sector that contribute to the establishment of sustainable forest management practices
“As with our operations throughout the country
We started forest operations in 2003 in Bahia
and have been operating in Sergipe since 2022
generating jobs and income in these regions and contributing to economic development,” recalls Quirino
states that the company invests significantly in Forestry Research and Development (R&D) to ensure the sustainable supply of wood in the long term
“The primary mission of Forestry R&D is to increase forest productivity (m3/ha/year and tsa/ha/year)
promoting faster tree growth and better wood quality
We have an intensive eucalyptus classical breeding program and strong development of sustainable silvicultural practices related to soil preparation and fertilization
Focusing on the segment of dissolving pulp and specialty dissolving pulp
reveals that the mill has an installed capacity of 500,000 tons
with 60% specialty pulp and the remaining 40% dissolving pulp – while the latter is mainly used for viscose production
the specialty dissolving pulp is especially used in pharmaceuticals
Bracell’s Project Star includes the world’s first fossil fuel-free pulp mill
Araújo also mentions that Bracell’s mill in Bahia has stood out for its investments in process and product R&D
aiming to grow in the specialty dissolving pulp segment and transforming the unit into a 100% producer of this raw material
“We are investing R$ 300 million this year and next
with part of this amount being allocated to the new cooking plant of line 1 and the rest to projects to improve the performance of line 2
aiming at improving the quality of the final product and increasing operational performance,” he details
“It is an excellent opportunity to establish ourselves as a major player in the specialty dissolving pulp market
offering our customers a reliable supply and providing differentiated performance
It is also an opportunity to diversify our specialty dissolving pulp portfolio,” says Bracell’s General Manager in Bahia
The Lençóis Paulista mill stands out as the most modern and sustainable plant
with an annual production capacity of 1.5 million tons of dissolving pulp and up to 3 million tons of kraft pulp
and we always seek to add value to our business
It is worth mentioning that production flexibility is a considerable advantage
The decision for each type of production is related to market demand,” says Dutra
This is not the only differentiator that makes the Lençóis Paulista unit a highlight in the sector
The mill operates without the use of fossil fuels and has a biomass gasifier as a renewable energy source
The unit also has the world’s largest recovery boiler and the lowest water consumption in the industrial sector
capturing rainwater and treating tertiary effluents
The mill is self-sufficient in electricity
with a substation with an installed capacity of 409 MW
with the surplus available on the national grid
we have a 24-hour monitoring center with artificial intelligence technologies for harvesting
The unit also has a monitoring center for fire prevention and fighting,” lists the VP of Corporate Affairs
Bracell Papéis’ newly inaugurated mill in São Paulo is positioned among the largest current tissue paper projects in Latin America
with an estimated annual production capacity of 240,000 tons
the plant is considered the most sustainable operation in the Latin American tissue sector
generating 9 MW of green energy (25% of the tissue mill)
Through the use of state-of-the-art technology
the mill has several other differentiators that contribute
reaffirming one of Bracell’s major commitments
In addition to the differentiators of the 100% automated and fossil fuel-free operation
there are zero carbon monoxide emissions into the atmosphere and lower water and energy consumption compared to other factories in the market
Bracell Papéis has the entire pulp production chain in its operations
allowing the company to offer more affordable products with superior quality
resulting from the high technology implemented in the production process and exclusive 3D embossing
is receiving investments of R$ 100 million – half of which will be allocated this year and the other half in the coming years – in operational modernization and the acquisition of a new conversion machine
as well as the implementation of an organizational culture focused on operational excellence and high productivity
Positive outlooks on the tissue market also guide Bracell’s strategic planning concerning the segment
especially for players with significant national and global growth potential like Bracell Papéis
The Brazilian population consumes about 6 kg per capita per year
indicating room for growth and offers with more benefits and added value,” explains Aron
Bracell Papéis offers a complete portfolio of single and double-ply toilet papers (Familiar and Velud)
the company is launching the premium toilet paper line Supra
which offers consumers a different performance standard
very close to the quality offered in more advanced markets
Bracell’s brands now include Familiar toilet paper
Based on the belief that the cultivated tree sector has a promising path by solidifying its practices based on ESG (Environmental
Bracell understands sustainability from end to end
“The company seeks to make a difference in every detail and is based on the philosophy that everything it does must be good for the community
Vice President of Sustainability at Bracell
“This means that the company is committed to the sustainable development of all its operations
invests time and resources focused on continuous improvement
seeking to adopt the best socio-environmental and ethical practices,” he says
A highlight of the company’s sustainability plan is the One for One Commitment
an unprecedented initiative in Brazil aimed at supporting the protection and conservation of biodiversity
Bracell will contribute to the conservation of areas of native vegetation equal in size to the company’s eucalyptus plantation areas: for each hectare of eucalyptus planted
Bracell commits to the conservation of one hectare of native vegetation
In addition to preserving native forests in the forest management areas under Bracell’s management (both its own and third-party areas)
the Commitment also supports the conservation of public areas through partnerships with the governments of the states where the company operates
Training and learning programs extend to local communities
Bracell employs over 11,000 employees in its industrial
and logistics activities – considering indirect workers
the total workforce exceeds 25,000 professionals
Head of Training and Development at the company
states that the 5 Cs philosophy is the foundation for all teams and permeates all projects led by the company
which are characterized by Complementary Team
we direct our efforts together with our employees to build a solid and effective culture
which guides our deliveries and projects aiming for Quality
Detailing practical examples that characterize the company’s organizational profile
the Lençóis Paulista unit inaugurated the Bracell Learning Institute
which seeks to connect people and the company’s purposes
“With an incentive for development and qualification
we carry out training and learning programs so that professionals have opportunities for career progression
in partnership with ISE Business School and INSEAD Singapore
whose objective is to provide knowledge of the development/training path for each employee
as well as training and partnerships with the community
in order to promote collective growth.”
These initiatives generally also involve Bracell’s units in Bahia
the company also maintains the Acelera Program
which aims to promote the hiring and training of new employees with the acquisition of multiple knowledge about the entire dissolving pulp production process
strengthening the region and contributing to entry into the labor market
The program has as partners the National Industrial Apprenticeship Service (SENAI) and the Superintendence of Professional and Technological Education (SUPROT)
20 young people are participating in the initiative in the company’s industrial area in Camaçari
emphasizes that Bracell also has as one of its values contributing to the development of the region
conducting training and promoting learning programs in local communities so that they have opportunities for career advancement,” he comments and reinforces that Bracell is a company that invests in technology and innovation
always combined with business sustainability
“An example is the data from the General Registry of Employed and Unemployed (CAGED)
released by the Ministry of Finance at the beginning of this year
in which the municipality of Lençóis Paulista
stood out in job creation and income in the 2023 balance
ranking 15th in the State of São Paulo with formal jobs and highlighting the industry.”
the positive balance represents a growth of 16.19% in the number of employees with signed work contracts in the municipality
compared to the number observed at the end of 2022
and the area with the most employment in the city is industry
This sector was also the one that grew the most in 2023
with a variation of 23.73% in stock compared to 2022
“We actively contribute to these numbers
as among the training and operational development actions offered are courses for training drivers
we understand the importance of a strong industry
we have technologies and projects applied in industry and the field using Artificial Intelligence
and software in search of continuous improvement and strengthening our operations,” he concludes
Bracell has a strong commitment to people development
Another highlight is the Chega Junto – Trainee entry program
showed a growth of more than 100% in the number of applicants: 17,000 compared to 8,500 applicants the previous year
students had a schedule of workshops and mentoring that will contribute to their development
and administrative processes and operations of the company,” says Peixoto
The initiative was launched in 2022 and the goal is for the company to reach 92% of the target by 2025
0.92 hectares of conservation for each hectare of eucalyptus planted
Within the scope of the One for One Commitment
Bracell helped to conserve and protect 105,000 hectares of Public Environmental Protection Areas in 2023 in the states of São Paulo and Mato Grosso do Sul
Bracell recognizes its responsibility to protect the environment and
in addition to already having a strong focus on sustainability
launched the Bracell 2030 roadmap at the end of 2023
with ambitious goals and commitments aligned with the UN’s Sustainable Development Goals
“Through the concrete actions of Bracell 2030
we can build a better future for the paper and pulp industry in Brazil
positioning Bracell as one of the leading voices in sustainability in our sector,” he says
Fourteen new commitments and goals have been assumed for the next seven years
divided into four pillars: climate action; sustainable landscapes and biodiversity; sustainable growth; and empowerment of lives
such as a 75% reduction in carbon emissions per ton of product; removal of 25 MtCO2eq from the atmosphere between 2020 and 2030; support for the conservation of 230,000 hectares of native vegetation in public areas
carrying out actions to protect and conserve public conservation units in the Atlantic Forest
and Caatinga biomes; support for at least ten partnerships or research projects per year on biodiversity conservation; a 47% reduction in water consumption per ton of product; a 90% reduction in the sending of solid waste to landfills per ton of product
Extending the responsible action to people and communities
Nappo informs that Bracell wishes to promote equality of opportunities for all
“We want to reach at least 30% of women in leadership positions at Bracell by 2030,” he says
we will promote women’s entrepreneurship
at least 60% of social business impact projects (small business projects in the communities) supported by the company must be led by women
the upcoming Bracell 2030 goals focus on income generation and quality public education in local communities
We want to increase by at least 20% the income of families participating in income generation projects promoted in priority areas and increase by 30% the proficiency in Portuguese and Mathematics in public schools supported by Bracell in areas with low learning indexes,” he cites other examples of actions promoted by the company
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Bracell's Lençóis Paulista mill completed the erection and commissioning of two flexible hardwood fibre lines which are geared for a capaciity of up to 2.8 million tpy of BEK pulp or 1.5 million tpy of eucalyptus-fibre based dissolving pulp (DP)
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High capacity with premium quality was reached within a few days after the production switch
Andritz said citing Bracell's Vice President Per Lindblom
RGE acquired the Lençóis Paulista mill frowm Lwarcel in 2018
the mill also houses an elder 250,000 tpy BEK pulp line
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This article is adapted from ‘RGE focuses on Brazil, boosting investments through Bracell’ which was originally published on Valor Econômico
At the centre of RGE’s business strategy is Brazil
a Brazilian producer of dissolving and bleached eucalyptus pulp and one of the most prominent investors in Brazil’s forestry sector
With more than $35 billion in assets and 70,000 employees globally
RGE manages a group of resource-based manufacturing companies with global operations
It also manages Asia’s leading pulp and paper companies
the group is currently the second-largest producer of market pulp in the world
In addition to the billion Brazilian Real investment to acquire and expand the former Lwarcel plant in Lençóis Paulista
Bracell is also investing R$2.5 billion in a mega tissue paper mill in the same town and another R$2.5 billion in a plant to produce chemicals used in pulp production
Bracell’s investments have exceeded R$30 billion
“Brazil is the sweet spot of the global pulp industry,” Praveen Singhavi told Valor in his first interview as Bracell CEO
he led APRIL as President for 16 years and has also previously led one of the global agricultural commodities trading companies present in Latin America
major investors are looking at Brazil due to the combination of government support for the pulp and paper industry and the existence of a mature ecosystem that contributes to the local industry
Added to these factors is the fact that raw material produced in Brazil is one of the lowest in the world
It’s no surprise that the country is now the world’s largest pulp exporter
Bracell is capable of producing up to 3 million tonnes of kraft pulp or 2 million tonnes of dissolving pulp annually
it further invested R$1 billion in a shipping terminal at the Port of Santos
RGE uses dissolving pulp produced in its Brazilian mills to produce viscose and non-woven fibres
and biodegradable material that is commonly found in clothing
and personal hygiene products such as baby wipes and beauty masks
RGE is also the world’s largest viscose producer through Sateri and Asia Pacific Rayon
Bracell now operates two tissue factories in Brazil with a capacity of 50,000 tonnes per year
These tissue products are marketed under the Familiar and Absoluto brands
and we see opportunities for further growth,” Praveen remarked
Bracell is now installing an additional 240,000 tonnes of capacity at a new plant in Lençóis Paulista
which will be scheduled to start operating in the second quarter of 2024
Bracell’s upcoming project entails a R$300 million investment over two years aimed at modernizing its plant in Bahia that produces rayon-grade dissolving pulp and speciality-grade dissolving pulp
The Bahia mill was RGE’s entry point into the country when it acquired the former Copener Florestal and Klabin Bacell in 2003
Mr Singhavi highlighted one of the sector’s most ambitious conservation goals known as the one-to-one commitment: for every hectare of land planted
Bracell is close to achieving this commitment
with the progress currently standing at almost 90%
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RGE recently held a screening of the Frontier Sumatra documentary for more than 200 students at the prestigious Raffles Institution
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The launch of the new Bracell pulp mill in São Paulo state
has resulted in the company becoming the largest dissolving pulp producer in the world
with a production capacity of up to 1.5 million tonnes of dissolving pulp or three million tonnes of kraft pulp per year at the new facility
More significantly, the expansion of Bracell’s operations – known as Project Star and centered on the new Lençóis Paulista mill – has seen the company invest heavily in equipment and infrastructure to mitigate environmental impact and to deliver on its promise to create the ‘largest and greenest’ pulp mill in the world
The new mill has the largest and cleanest recovery boiler in the world
The gasification plant at the mill uses 100% renewable biomass as feedstock to produce biogas
The state-of-the-art technology used in its energy production processes includes a new 440kV power substation
Surplus energy is shared to the national grid and helps provide power for up to 750,000 homes or about three million people
Bracell uses 100% certified wood eucalyptus from reforestation as raw material for its pulp production
The wood is harvested from plantations in areas that were previously occupied by pasture or were degraded
This has a positive overall impact on the sequestration of carbon
over 30% of the Bracell land bank is dedicated for conservation and restoration
Project Star in 2019 (left) and 2022 (right)
Project Star received a resounding endorsement from the banking sector
with the announcement of a US$1.8 billion syndicated loan facility from a group of Brazilian and international banks
The seven-year loan facility is jointly led by Banco Bradesco and Bank of China
RGE President Tey Wei Lin spoke at the 2022 RGE Bankers’ Forum
said: “This underscores our commitment to sustainable development
a mandate which underpins our operations globally
With dissolving pulp being both renewable and biodegradable
it caters to the growing trend and customers’ preference towards the use of sustainable products.”
“The project is much more than a pulp mill
Here we will have the largest and cleanest recovery boiler in the world
equipped with state-of-the-art technologies that are not yet used on an industrial scale in the region.” Pedro Stefanini
which provided the pulp drying systems sued at the new mill
Bracell is vertically integrated through from its plantations through to the production of kraft pulp
dissolving pulp and specialty cellulose which are sold to domestic and international markets
Dissolving pulp and specialty cellulose are among the main ingredients used to create a wide range of products
baby wipes and eyeglass frames to packaging for sausages and pharmaceuticals as well as industrial products such as high-performance tire cables
Bracell held a launch ceremony on 5th November 2021
which saw about 1,200 participants attending over two legs
The company also had a Gala Dinner for its main vendors
Vendors and Bracell’s leadership gave their remarks and updates at the dinner
expressing support and gratitude for one another
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