Suzano (SUZ) Shares Surge 6.79% as 400% Capacity Expansion Targets Sustainable Absorbent Products Demand

The share price rose to its highest level so far this month today, with an intraday gain of 6.79%.

Suzano (SUZ) announced a R$490 million expansion of its fluff pulp production capacity, increasing output by 400% to 440,000 tonnes annually at its Limeira, Brazil, unit. The project, which began operations on December 17, 2025, reflects the company’s strategy to meet surging global demand for absorbent products such as diapers and sanitary pads. By converting an existing pulp line into a dual-capacity facility, Suzano can now produce both its proprietary Eucafluff® and market pulp, enhancing flexibility in addressing diverse customer needs. The move aligns with industry trends toward sustainable materials, leveraging eucalyptus—a fast-growing, renewable resource—to reduce environmental impact and transportation costs.

The expansion strengthens Suzano’s competitive positioning in the absorbent materials sector, where sustainability and performance are key drivers. Eucafluff®’s advantages, including superior softness and reduced plastic usage, position the company to capitalize on a market projected to grow due to rising hygiene product demand. Additionally, Suzano’s geographic diversification across Latin America, North America, Europe, and Asia, coupled with its dual-listing on B3 and NYSE, supports long-term contract stability and access to capital. Analysts highlight the project’s alignment with ESG priorities, which are increasingly critical for institutional investors, as Suzano’s environmental credentials and operational efficiency bolster investor confidence amid a shift toward renewable solutions.

Investor sentiment has been further supported by Suzano’s robust operational metrics, including a 12.5% increase in quarterly production efficiency. The company has also committed to achieving carbon neutrality by 2030, with an intermediate target of a 40% reduction in emissions by 2028. This commitment is already translating into tangible financial outcomes, with earnings per share (EPS) rising by 18% year-over-year. Suzano’s strategic focus on innovation—such as the development of biodegradable alternatives to conventional fluff pulp—also positions it to outperform competitors in a sector undergoing rapid transformation due to regulatory and consumer pressures.