A USD 2.0bn (BRL 10.35bn) pulp and energy complex in Alto Araguaia, Mato Grosso, first granted a preliminary licence in 2019, has resurfaced with a new timetable published on LinkedIn by Leonardo Garcia Degrazia. The plan covers a 2 million tonne per year bleached eucalyptus pulp mill, a 372 MW biomass plant, a rail spur and a freight terminal, with investment approval set for June 2027 and construction from December 2027. No equipment contracts have been publicly confirmed.
Why this mattersA new 2 million tonne pulp mill would add meaningful capacity to the fibre supply chain that underpins paper-based packaging, once financing and permits clear.
- Project valued at USD 2.0bn (BRL 10.35bn) for a 2 million tonne per year bleached eucalyptus pulp mill in Alto Araguaia, Mato Grosso
- The mill alone is estimated at USD 1.84bn; the site's preliminary environmental licence dates from 2019
- Plan includes a 372 MW biomass power plant, a dedicated rail spur and a freight terminal
- Schedule foresees environmental and financing approvals by January 2027, investment approval in June 2027 and equipment quotations from August 2027
- Bidding documents are expected in October 2027, construction from December 2027 and completion in December 2028
- Valmet and Andritz Brasil are named as technology suppliers under evaluation, with no definitive contracts publicly confirmed; AFRY Brasil is engineering consultant
Saudi Arabia's Middle East Paper Co. (MEPCO) has pushed back the startup of its sixth tissue line (TM6) at subsidiary Juthor Paper in King Abdullah Economic City to Q1 2027 from Q3 2026, citing supply-chain disruption linked to regional geopolitical conditions. The company also delayed its PM5 recycled containerboard machine at its Jeddah mill to Q1 2028 from Q4 2027 and raised its estimated cost to SAR 1.881 billion from SAR 1.78 billion, while the TM6 budget of SAR 345 million is unchanged.
Why this mattersThe slippage delays new containerboard and tissue capacity reaching the Middle East market and postpones the projects' contribution to MEPCO's earnings.
- TM6 trial production delayed to Q1 2027 from Q3 2026, commercial output also targeted Q1 2027
- TM6 will add 60,000 tonnes/year of tissue capacity, doubling Juthor's output to 120,000 tonnes
- TM6 investment unchanged at SAR 345 million
- ANDRITZ supplies the TM6 Prime Line W 2200, designed for 2,100 m/min at 5.47 m width
- PM5 recycled containerboard machine at Jeddah delayed to Q1 2028 from Q4 2027
- PM5 estimated cost raised to SAR 1.881 billion from SAR 1.78 billion, machine capacity 450,000 tonnes/year
- PM5 engineering works are 98% complete
- Cost increase attributed to higher civil construction expenses, enhanced power and steam solutions, and rising global shipping and logistics costs
- Updated internal rate of return for the PM5 project is estimated at 12%
- SAR 465m (USD 124m) of capital-increase proceeds allocated to PM5, including SAR 291m transferred recently
- Expected PM5 project internal rate of return stands at 12%
- PM5 will produce a new 70 GSM grade versus the 90-100 GSM range currently sold domestically
- Company reported good profits in H1 2026 despite higher raw material, energy, logistics and insurance costs
- Updated project internal rate of return for the PM5 containerboard machine is now 12%.
- The containerboard project was first announced in April 2024 with 450,000 tonnes of capacity; the tissue line was approved in August 2024 at subsidiary Juthor.
- MEPCO says both delays will push back the positive earnings and EBITDA contribution from the two lines.
- MEPCO's statement cites PM5 capacity of 475,000 tonnes per year of recycled containerboard
Suzano's single-line pulp mill at Ribas do Rio Pardo in Mato Grosso do Sul, Brazil, is operating at its nameplate capacity of 2.55 million tonnes a year, a level reached in less than a year of full operation after investment exceeding USD 4.2bn (BRL 22bn). The plant, part of the Cerrado Project and built with process technology from ANDRITZ, lifted Suzano's market pulp capacity by about 20% to roughly 13.5 million tonnes a year. It also exports surplus renewable power averaging about 180 MW to the Brazilian grid.
Why this mattersA fast ramp-up of this scale adds significant low-cost pulp supply to global markets, reinforcing pricing and competitive pressure for other producers.
- Investment exceeded USD 4.2bn (BRL 22bn) at the Ribas do Rio Pardo site in Mato Grosso do Sul
- Single-line capacity of 2.55 million tonnes of pulp a year was reached in under a year of full operation
- The plant lifts Suzano's total market pulp capacity by about 20% to approximately 13.5 million tonnes a year
- Process technology, including wood preparation and chemical recovery, was supplied by ANDRITZ
- The plant exports surplus renewable power of about 180 MW on average, enough to supply a city of over 2 million people
- Construction took about 30 months and peaked at over 10,000 workers; the operating workforce has stabilised at about 3,000 jobs
Metsä Group has secured EUR 21m in Finnish public funding for a planned wood-based carbon dioxide capture plant at Metsä Fibre's Rauma pulp mill. The facility would capture around 100,000 tonnes of biogenic CO2 a year from the mill's recovery boiler for use as a raw material in e-fuels. A final investment decision is not expected before early 2027, subject to permitting, engineering and market demand.
Why this mattersState-backed carbon capture at a pulp mill could open a new revenue stream from biogenic CO2 and set a template for decarbonising the forest industry's flue gas emissions.
- Metsä Group awarded EUR 21m via a reverse auction run by Finland's Ministry of Economic Affairs and Employment
- Planned plant at Metsä Fibre's Rauma pulp mill would capture about 100,000 tonnes of wood-based CO2 per year
- Aid is paid only if the investment proceeds, with final investment decision not expected before early 2027
- Pilot testing was carried out at Rauma in 2025 with technology supplier Andritz; pre-engineering began in 2026
- Captured CO2 is intended for use as a raw material in e-fuel production, potentially avoiding emissions equivalent to nearly 30,000 passenger cars annually
- Project remains conditional on environmental permit, completed engineering and sufficient market demand
