Eldorado Brasil Celulose's board has authorised preparations for merging the company into J&F, which is centralising the group's finances and has already absorbed Ambar Energia. J&F became sole owner in May 2025 by buying Paper Excellence's stake for BRL 15bn (USD 3.0bn), but the planned second line at Tres Lagoas, held up by the dispute since 2018, still has no public start or completion date. Net debt rose to BRL 9.7bn (USD 1.9bn) at end-2025 from BRL 966m (USD 192m) a year earlier.
Why this mattersAn open-ended delay to 2.6 million tonnes of short-fibre capacity defers a large block of expected global pulp supply growth while Eldorado's net debt has risen tenfold.
- Eldorado's board authorised preparing the company's merger into J&F, which is centralising group finances; Ambar Energia has already been merged in.
- The second Tres Lagoas line would add 2.6 million tonnes/year, taking short-fibre capacity to about 4.4 million tonnes; it has no public start or completion date.
- The line is part of a BRL 25bn (USD 5bn) programme covering the mill, forests and a railway, unveiled in 2024.
- J&F closed its purchase of Paper Excellence's stake in Eldorado for BRL 15bn (USD 3.0bn) in May 2025.
- Net debt reached BRL 9.7bn (USD 1.9bn) at end-2025, up from BRL 966m (USD 192m) a year earlier.
- Eldorado issued BRL 13bn (USD 2.6bn) of commercial notes in June 2025 to fund the stake purchase; by July they had been replaced with longer, cheaper facilities.
- Eldorado's pulp production was stable in 2025 despite the ownership dispute.
- BNDES approved USD 188m (BRL 1.05bn) in December 2025 for an 86.7km rail link to the Aparecida do Taboado terminal
- Suzano started its 2.55m tonne a year Ribas do Rio Pardo pulp plant in 2024
- Arauco is developing the 3.5m tonne a year Sucuriu pulp project in Brazil
Shareholders of Arauco's Argentine subsidiary have approved a general authorisation to sell company assets, with no properties, buyers or prices disclosed. Local press reports suggest the sale could cover offices, land and forest holdings deemed non-strategic, as Arauco advances its USD 4,600m Sucuriu pulp project in Brazil.
Why this mattersSales of Argentine land and forests would reshape Arauco's regional footprint while it builds a USD 4.6bn Brazilian pulp mill, though no link between the two is documented.
- An extraordinary shareholders' meeting of Arauco Argentina, called for 19 October 2026, approved a general authorisation to transfer company assets, without naming properties, buyers or amounts.
- Diario Financiero reported the authorisation could cover offices, land and forest holdings considered non-strategic.
- Arauco's Sucuriu pulp project in Inocencia, Mato Grosso do Sul, Brazil, carries a planned investment of USD 4,600m and capacity of 3.5m tonnes a year.
- Sucuriu's first stone was laid in April 2025, with start-up planned for late 2027.
- In August 2025 Arauco announced a financing package of about USD 2,200m for Sucuriu, with IDB Invest, the IFC and guarantees from Finland's Finnvera.
- ICI Forestal found no corporate document assigning proceeds from any specific Argentine sale to the Brazilian project.
Suzano is attempting a further pulp price increase in October, targeting USD 600 per tonne for short-fibre pulp in China, after successfully pushing through a rise in September, according to a BTG Pactual note following meetings with Suzano executives in New York. The bank cites lower port inventories, delays to Asia Pulp and Paper's OKI II project and about 1.3 million tonnes of permanent long-fibre capacity closures as supporting near-term prices, but Suzano itself warned that new supply due in 2027, including Arauco's 3.5 million tonne Sucuriu plant and the delayed 1.4 million tonne OKI II project, could outpace demand growth of only 1-1.5 million tonnes a year and push prices lower again. Suzano said it is prioritising debt reduction and integration of its Kimberly-Clark joint venture over new capacity investment, expecting leverage to peak in the third quarter of 2026.
Why this mattersBuyers face higher pulp costs now, while 2027 capacity additions far exceed structural demand growth of 1-1.5m tonnes a year.
- Suzano is targeting USD 600 per tonne for short-fibre pulp in China in the October price round, after implementing a September rise, per BTG Pactual.
- Arauco's Sucuriu plant in Mato Grosso do Sul is expected to start in H2 2027 with capacity of 3.5 million tonnes of pulp a year.
- Asia Pulp and Paper's OKI II project, delayed to 2027, is expected to add a further 1.4 million tonnes of capacity.
- About 1.3 million tonnes of long-fibre pulp capacity have been permanently closed, supporting the recent price recovery.
- Structural pulp demand growth is estimated at only 1-1.5 million tonnes a year, below planned new supply.
- Suzano expects its leverage to peak in the third quarter of 2026 after completing its Kimberly-Clark transaction, and is prioritising debt reduction over new capacity.
- Hardwood pulp price increase of USD 50 per tonne in the Americas and Europe and USD 20 per tonne in Asia, effective 24 September 2026
- Net debt target lowered to USD 11bn from USD 12bn as of 22 September 2026
- 2026 capital expenditure plan set at USD 2.1bn
- Q2 2026 revenue of BRL 11.59bn and net income of BRL 1.81bn, with adjusted EBITDA of BRL 4.2bn at a 48% margin on pulp sales of 2.9m tonnes
CMPC is weighing whether to proceed with Projeto Natureza, a USD 4.6bn bleached eucalyptus kraft pulp mill in Brazil, amid reports that the debt required could cost it its investment grade credit rating. Analysts cited in the reports point to alternatives such as bringing in a joint-venture partner, divesting non-core assets or scaling back the plant's initial capacity to cut the upfront outlay. The reports, dated 6 October 2026, draw on Bloomberg.
Why this mattersA downgrade would raise CMPC's borrowing costs and limit access to bond funds, a trade-off other pulp producers weigh when sizing capacity expansions.
- Projeto Natureza is a planned USD 4.6bn pulp mill in Brazil producing bleached eucalyptus kraft pulp.
- CMPC holds investment grade credit status that it risks losing if leverage rises to fund the project.
- Rating agencies are reported to be monitoring CMPC's capital allocation strategy on the project.
- Analysts cited in the reports suggest alternatives including joint-venture partners, non-core asset divestments or a reduced initial plant capacity.
- Brazilian environmental licensing (IBAMA), currency volatility and pulp price cycles are cited as execution risks.
Arauco has completed the sale of standing eucalyptus timber, excluding the underlying land, across 561 forestry plots in the Valdivia area of Chile's Los Rios region for more than USD 216m plus VAT. The buyer is a Chilean company controlled by a local forestry investment fund; the agreement was first disclosed in July 2026 and Arauco has not named the purchaser.
Why this mattersThe disposal trims Arauco's forestry base in southern Chile and hands a local investment fund a large eucalyptus resource without land ownership.
- Sale price exceeds USD 216m plus VAT and excludes the land
- The transaction covers standing eucalyptus timber on 561 forestry plots in Valdivia, Los Rios region
- The buyer is a Chilean company controlled by a local forestry investment fund, not publicly named
- The agreement was first disclosed in July 2026 and has now been completed
- Chile's forestry regulator Conaf says a change of title requires new forest management plans
- Conaf says it has no formal list yet of the plots being transferred
Brazil's rail regulator ANTT has registered Arauco Celulose do Brasil as a dependent user of the public freight rail network, a step toward moving future output of the Sucuriu pulp project to the Port of Santos. The USD 4.6bn mill under construction in Inocencia, Mato Grosso do Sul, is designed to produce about 3.5m tonnes a year of bleached eucalyptus kraft pulp; in its decision ANTT describes the project as the largest mill of its type in the world. The 17 September 2026 registration sets no start date for rail shipments and does not specify wagon numbers or required rail infrastructure spending.
Why this mattersRail access to Santos underpins the export economics of a 3.5m tonne eucalyptus pulp line, reinforcing Arauco's cost position in global BHKP supply.
- ANTT registered Arauco Celulose do Brasil as a dependent user of public freight rail service on 17 September 2026
- Sucuriu project represents an estimated USD 4.6bn investment in Inocencia, Mato Grosso do Sul
- Planned capacity is approximately 3.5m tonnes per year of bleached eucalyptus kraft pulp
- Rail corridor will run from Inocencia to a dedicated private-use terminal at the Alemoa area of the Port of Santos
- Rail haulage is to be provided by Rumo Malha Norte and Rumo Malha Paulista
- The registration sets no start date for rail movements and does not detail wagon numbers or infrastructure spend
- Construction of the Sucuriu mill is 81% complete and running 6% ahead of the original schedule as of October 2026.
- Startup is targeted for the fourth quarter of 2027, though some estimates point to the first quarter of 2028.
- The plant will create about 6,000 permanent jobs across industrial, forestry and logistics operations once fully operational.
- A dedicated short-line railway linking the plant to ports is due for completion in the first half of 2027.
Arauco has begun lifting the 18 beams of a 270-metre rail bridge over the Sao Mateus stream at Inocencia, Mato Grosso do Sul, part of a BRL 2.4bn, 45km spur linking its Sucuriu pulp mill to the Rumo Malha Norte network and on to the Port of Santos. The company has also taken delivery of the first 108 of 254 forestry harvesting machines ordered under a BRL 500m investment, with the first harvesting module due to start in December 2026. Arauco expects to complete the railway and start up the mill, which it describes as the world's largest single-line pulp mill, at the end of 2027.
Why this mattersRail-to-port capacity and a harvesting fleet on the ground remove two of the main execution risks from the end-2027 start-up of Brazil's largest pulp mill.
- Beam lifting on the 270-metre, 18-beam rail bridge over the Sao Mateus stream began in September 2026 and is due to finish by the end of the month
- The rail project carries planned investment of BRL 2.4bn, covering 45km of track to the Rumo Malha Norte network plus 9km inside the industrial site
- Planned operations involve 26 locomotives and 721 wagons, with each train carrying up to 9,600 tonnes of pulp, removing about 190 truck trips a day from local roads
- Arauco has received the first 108 of 254 forestry machines ordered under a BRL 500m investment; the first harvesting module starts in December 2026 and the second in February 2027
- Arauco expects to complete the railway and start up the Sucuriu mill at Inocencia at the end of 2027
- More than 14,000 jobs are expected during construction and about 6,000 in industrial, forestry and logistics roles once operating, out of up to 20,000 opportunities in total
- Delivered machines to date include 26 harvesters, 6 forwarders and 76 support trucks, part of a 254-machine, BRL 500m (USD 97m) fleet
- Ten harvesting modules are planned, with combined capacity of more than 1.1m cubic metres of wood a month
- Full fleet target is 128 harvesters and 50 forwarders alongside the 76 trucks already delivered
- The Sucuriu mill will have rated capacity of 3.5m tonnes of pulp a year once operational
- The overall Projeto Sucuriu investment is put at USD 4bn (BRL 23bn)
- The dedicated rail spur cost is stated at USD 0.5bn (BRL 2.4bn)
- Total Sucuriu project investment is estimated at USD 4.6bn, with 3.5m tonnes/year cellulose capacity
- Target throughput is over 1.1m cubic metres of wood a month, about 13m cubic metres a year
- Around 1,200 workers are expected once all ten harvesting modules are operational
- Total investment in the Sucuriu pulp mill is USD 4.6bn (R$ 25bn)
- Projected capacity is 3.5 million tonnes of pulp a year, built in a single stage
- Arauco has secured 400,000 hectares of eucalyptus plantation to supply the mill
- Civil works on the mill began in April 2026, with first pulp expected in the fourth quarter of 2027
- Mato Grosso do Sul signed a service order for a 125 km gas pipeline from the Gasbol network at Tres Lagoas to the Inocencia site, budgeted at BRL 170m (USD 33m).
- The pipeline is set to start construction in April 2026, be inaugurated in August 2027, and reach stable supply of 50,000 cubic metres a day from July 2028.
- Arauco cites planned biomass power generation of 556 MW at Sucuriu, including 200 MW for export, versus 400 MW previously cited by the state government.
- Construction workforce at the site is currently about 9,500, forecast to peak at 14,000.
- The Sucuriu project reached about 70% physical completion as of September 2026.
- Arauco manages 347,000 hectares in Mato Grosso do Sul for the project, including more than 84,000 hectares of preserved native vegetation.
- Vibra will invest BRL 45m to build and operate an on-site fuelling station under a five-year supply contract with Arauco.
- The Sucuriu mill represents Arauco's largest-ever investment at USD 4.6bn and marks its entry into pulp manufacturing in Brazil.
- Planned annual capacity is 3.5 million tonnes of market cellulose in a single production stage.
- The Sao Mateus rail bridge has reached 70% of scheduled completion, with the overall rail line 50.8% complete as of late September 2026.
- The bridge uses about 9,000 cubic metres of concrete and 500 tonnes of steel; each of its 18 girders is about 30 metres long, 3 metres high and weighs 92 tonnes.
Mercer International is curtailing production this month at its 360,000 tonne-per-year Rosenthal northern bleached softwood kraft mill in Germany, for a mix of scheduled maintenance and market-related reasons. The downtime comes as Mercer continues to switch its Celgar mill from NBSK to unbleached kraft pulp on a weaker NBSK market. US NBSK spot prices to the East and Midwest rose USD 5 per tonne to USD 700-720 net delivered through 11 September 2026.
Why this mattersEuropean downtime and announced Canadian closures are thinning spot NBSK availability, giving producers their first price gain in months.
- Rosenthal has capacity of 360,000 tonnes a year of NBSK pulp.
- The September 2026 curtailment covers both scheduled maintenance and market-related downtime.
- Mercer is shifting Celgar output from NBSK to unbleached kraft pulp on a weaker NBSK market.
- US NBSK spot prices to the East and Midwest rose USD 5 per tonne to USD 700-720 per tonne net delivered through 11 September 2026.
- Preliminary September US NBSK contract list prices were unchanged at USD 1,570 per tonne; SBSK was flat at USD 1,505 per tonne.
- Announced closures of Canfor and Domtar market NBSK mills in Canada have so far had little price impact.
Montes del Plata, the Uruguayan pulp joint venture of Stora Enso and Arauco, has produced exclusively talc-free eucalyptus pulp since spring 2026, replacing talc with an organic additive that controls resin deposits. Stora Enso announced the change on 20 August 2026, citing customer expectations and regulatory scrutiny of talc. The switch followed evaluation from 2023, lab trials in 2024, and subsequent industrial trials.
Why this mattersThe move signals rising regulatory and customer pressure on talc in pulp processing, with implications for other eucalyptus pulp producers.
- Montes del Plata has produced exclusively talc-free eucalyptus pulp since spring 2026
- Talc has been replaced by an organic additive that controls resin (pitch) deposits
- Stora Enso announced the change on 20 August 2026
- Stora Enso and Arauco began evaluating replacement solutions in 2023, with lab trials in 2024
- The additive reportedly meets US FDA requirements and German BfR recommendations for food contact
- Montes del Plata supplies eucalyptus pulp to global markets
