Studies are in an advanced stage and are expected to be submitted for approval later this year
09/08/2022
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Nilton Saraiva — Foto: Divulgação
Ibema, a cardboard maker that has Suzano as a shareholder, is studying the feasibility of building a new mill to make bleached chemi-thermomechanical pulp, or BCTMP, in Turvo, Paraná. The estimated investment in the unit, which will have a production capacity of up to 160,000 tonnes of raw material per year and is expected to be Brazil’s largest one, was not disclosed, since negotiations with suppliers are still underway.
The studies are in an advanced stage and are expected to be submitted for approval later this year, CEO Nilton Saraiva said. This way, the construction work could start, at the latest, by the second quarter of 2023. “This plant will have Brazil’s most modern BCTMP production process,” he said.
About 40% of the additional BCTMP production will be used by Ibema and 60% will be supplied to Suzano through a long-term contract and at market prices. The new plant will meet the companies’ current demand and support future expansions in cardboard production.
“The BCTMP project will considerably improve the return of the capacity expansion projects that are currently being studied by both companies,” said Fabio Almeida, Suzano’s executive director of paper and packaging, in a note.
The investment will also allow for an increase in both margins and quality of the cardboard paper, which is used in packaging production, produced by Ibema. There will be gains in rigidity and printing, for example.
Ibema’s cardboard output, which is operating at the limit of its capacity, is expected to exceed 150,000 tonnes this year. In 2023, through initiatives to streamline production, the output should reach 160,000 tonnes. The company has plants in Turvo and Embu das Artes, São Paulo.
“The project brings us more control over the supply chain, which is important because of customer service and brings greater competitiveness in terms of costs,” the executive said. Today, the company exports about 25% of its cardboard output despite mounting quality requirements in the international market.
According to Mr. Saraiva, Ibema has already secured the necessary volumes of wood to supply the new plant, considering its own crop and third-party inputs. The mechanical pulp contains 80% eucalyptus and 20% pine.
Looking at the industrial assets, the Turvo plant will specialize in cardboard produced from virgin fiber, while the Embu das Artes plant output will be focused on recycled paper, another strategic market for the company.
In 2019, the company launched Ibema Ritagli, the first post-consumer triplex cardboard in the Brazilian market, with 50% recycled fiber, of which 30% comes from post-consumption. Today, about 7% of total revenue comes from products with post-consumer trimmings. Ibema Impona, in turn, is composed of post-industrial trimmings.
According to Mr. Saraiva, the domestic demand for cardboard is still strong and exports had to be reduced to ensure domestic supply. The domestic market is expected to grow by 2% to 3% in volume.
The demand for cardboard remains steady, especially in the pharmaceutical and delivery segments and in those where plastic is being replaced by more sustainable materials like disposable cups. The demand from end consumers for products with a greater sustainability footprint, such as cards with post-consumption trimming, has also ensured sales growth. “This brings opportunities in circular economy projects,” he said.
*By Stella Fontes — São Paulo