Suzano Sees No Short-Term Impact from US Tariffs

Brazilian pulp giant Suzano does not expect a short-term impact from US tariff announcement. Suzano SA, formerly Suzano Papel e Celulose SA, is a forestry company that develops products from eucalyptus forests and produces eucalyptus pulp and paper in Latin America. Its operations are divided into two segments: Pulp and Paper. Suzano has numerous subsidiaries and a vertically integrated business model.

Brazilian pulp giant Suzano SA, formerly known as Suzano Papel e Celulose SA, is a forestry company that develops products from eucalyptus forests and produces eucalyptus pulp and paper in Latin America. The company's operations are divided into two segments: Pulp and Paper, with numerous subsidiaries and a vertically integrated business model.

Suzano has expressed that it does not expect a short-term impact from the recent U.S. tariff announcement. U.S. President Donald Trump has proposed imposing 50% tariffs on all products from Brazil starting August 1, which could significantly affect Brazil's agricultural and industrial exports [1].

However, Suzano's CEO, Beto Abreu, stated that the company's pulp operations are not expected to be immediately impacted by the tariffs. Suzano's primary exports to the U.S. include pulp, which accounts for a significant portion of its revenue. The company's operations are highly diversified, with a strong presence in the global market, which may help mitigate the potential effects of the tariffs.

Suzano's recent joint venture with Kimberly-Clark, a global leader in the consumer staples industry, further underscores the company's commitment to global expansion and diversification. The joint venture, valued at US$3.4 billion, will focus on the manufacture, marketing, and distribution of consumer and professional tissue products in over 70 countries [2].

The joint venture will be incorporated in the Netherlands and will include 22 manufacturing facilities located in 14 countries across Europe, Asia, including Southeast Asia, the Middle East, South America, Central America, Africa, and Oceania. Collectively, these facilities have an installed capacity to produce approximately 1 million tonnes of tissue per year.

While the U.S. is a significant market for Suzano, the company's global presence and diversification may help it navigate the challenges posed by the proposed tariffs. Suzano's long-term strategy focuses on operational efficiency, innovation, and sustainability, which may position it to weather short-term disruptions.

References:
[1] https://ca.finance.yahoo.com/news/factbox-50-us-tariff-rate-212051574.html
[2] https://www.pulpandpapercanada.com/suzano-and-kimberly-clark-announce-the-creation-of-a-global-tissue-company-operating-in-over-70-countries/