Mergers

Large merger in the cellulose market in Brazil

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It is official: Fibria www.fibria.com will merge with Suzano Papelw ww.suzano.com and together this will be the beginning of one unique large wood pulp manufacturer. The Brazilian development bank, BNDES, has announced that Fibria Celulose and Suzano Papel e Celulose, both with their headquarters at San Paolo, will combine their businesses. BNDES, through its subsidiary Participações (BNDESPar), is one of the two main shareholders in Fibria and has a minority interest in Suzano.

Suzano and Fibria, who already share similar values and principles, will therefore build a future together. The company resulting from this merger will have 37 thousand employees and contractors, with business located strategically in Brazil and throughout the world. Their eleven industrial units will produce, annually, 11 million tonnes of bleached eucalyptus pulp and 1.4 million tonnes of paper and cardboard, with annual exports of about 18 billion Brazilian Reals and programmed investment for 2018 of about 6.4 billion. Its cash cost will be amongst the lowest of the sector globally, which emphasises its efficiency and strengthens it competitiveness in a global market of more than 50 players.