Suzano's Record Sales: New Mill and U.S. Acquisition Drive Growth

Suzano, the world's largest pulp producer, has set a new sales record in 2024, driven by the successful startup of its new mill in Mato Grosso do Sul state and strategic acquisitions in the United States. The company's strong performance reflects its commitment to operational excellence, sustainability, and strategic growth.

The new mill in Mato Grosso do Sul state, known as the Cerrado Project, has significantly contributed to Suzano's record sales volume. The mill, which began operations on July 21, 2024, has an annual production capacity of 2.55 million tons of eucalyptus pulp, increasing Suzano's production capacity by more than 20% to 13.5 million tons a year. This additional capacity has allowed Suzano to achieve a new record of 12.3 million tonnes of pulp and paper sales in 2024, a 7% increase from 2023.

The success of the new mill can be attributed to several key factors:

1. Efficient construction and startup: The Cerrado Project was completed within the planned budget and timeline, with the mill reaching full production capacity in less than six months, well ahead of industry expectations.
2. Reduced cash cost: The new mill has contributed to a 6% reduction in Suzano's pulp cash cost, which stood at R$828/tonne in 2024 compared to the prior year.
3. Sustainable operations: The mill is designed to be self-sufficient in green energy production, with a surplus of approximately 180 megawatts (MW) on average, which can serve the satellite suppliers of the mill and contribute to the National Interconnected System (SIN). This energy from a renewable source is enough to power a city of up to 2 million inhabitants monthly.
4. Proximity to eucalyptus farms: The mill's proximity to Suzano's eucalyptus farms means emissions and time from logging transportation will be significantly reduced. The structural distance from forest-to-mill is only 65 kilometres on average compared to Suzano's structural average supply radius of 150 kilometres.
5. Positive impact on local communities: The new mill has created 3,000 full-time jobs at the mill and the surrounding forestry and logistic operations, contributing to the local economy and community development.

Suzano's acquisition of industrial assets from Pactiv Evergreen in the United States has also played a significant role in driving the company's growth. The acquisition of two mills in Pine Bluff, Arkansas, and Waynesville, North Carolina, has allowed Suzano to enter the consumer and food service packaging segments in the North American market, which is a fast-growing market with high demand for paper-based packaging. By acquiring these mills, Suzano gains access to a broader range of packaging products and strengthens its position in the U.S. market.

The acquired assets benefit from high availability of wood in the region, low energy costs, and good access to railways, ports, and highways, which will help Suzano enhance operational efficiency, production scale, and safety standards at these units. This will open up new opportunities for the employees and positively impact the local communities of Pine Bluff and Waynesville.

Additionally, Suzano has signed a long-term supply deal with Pactiv Evergreen to provide liquid packaging board for its converting business. This deal will help Suzano establish a strong foothold in the North American market and create synergies with its existing operations.

Fabio Almeida, Executive Vice President of Paper and Packaging at Suzano, stated that "this acquisition is in line with our strategy. We are entering the North American market as a competitive producer of paperboard, taking on quality assets that are strategically well-located from an operational and logistical perspective, and opening new opportunities for growth."



Suzano's potential acquisition of Clearwater Paper, as reported by Valor, would further solidify its position in the U.S. market and provide access to a broader range of packaging products. Clearwater Paper has a market capitalization of nearly $410 million and net sales of $1.7 billion in the first nine months of 2024, making it an attractive target for Suzano's expansion plans.

In conclusion, Suzano's record sales in 2024 are a testament to the company's strategic investments in new mills and acquisitions, as well as its commitment to operational excellence and sustainability. The company's strong performance reflects its ability to adapt to changing market conditions and capitalize on new opportunities. As Suzano continues to expand its global footprint, investors can expect the company to maintain its competitive edge and deliver long-term growth.