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
The British Columbia Supreme Court has refused to approve a reverse vesting order that would have extinguished long-standing fibre supply agreements held by TimberWest and Domtar over Tree Farm Licence 46, as part of insolvent Teal-Jones Group's proposed sale of its Surrey Mill and TFL 46 to Gillfor Manufacturing. The court found the agreements constitute a proprietary interest in the land that should not be vested out, and will not approve the sale unless the agreements remain in force. Domtar's coastal British Columbia pulp mills rely on the agreements for fibre supply.
Why this mattersThe ruling limits insolvency sales' ability to strip long-term fibre supply contracts tied to land interests, protecting Domtar's coastal BC pulp mill feedstock security.
- BC Supreme Court refused to approve a reverse vesting order for Teal-Jones Group's sale of its Surrey Mill and Tree Farm Licence 46 to Gillfor Manufacturing.
- The deal, agreed 17 July 2026, would have vested fibre Supply Agreements held by TimberWest and Domtar into a new company, rendering them unenforceable.
- Domtar is successor to Norske Skog Canada and holds Supply Agreements dating from January 2004 tied to TFL 46, needed for its coastal BC pulp mills.
- The court held the agreements amount to a proprietary interest (profit a prendre) in TFL 46 that should not be extinguished.
- Teal-Jones Group entered CCAA protection on 25 April 2024, citing COVID-19, US tariffs and high interest rates.
- The court found insufficient evidence the agreements were uneconomic or would prevent Gillfor from operating the assets.
Thunder Bay Pulp and Paper will receive more than CAD 2.4m in Ontario provincial funding to plan boiler and chemical-plant upgrades expected to raise daily kraft production by 11%. The upgrades would also cut bleaching-chemical use by around 30% and reduce annual natural gas consumption by more than 5 million cubic metres. Separately, Ontario is providing CAD 93,000 to AUX Energy for a biomass generator project in Fort Frances and CAD 33,000 to Weyerhaeuser for production-line upgrade studies.
Why this mattersThe upgrade would lift kraft capacity at a Northwestern Ontario mill while cutting gas and chemical use, supporting the region's forestry-sector cost base.
- Ontario will provide more than CAD 2.4m for planning of boiler and chemical-plant upgrades at Thunder Bay Pulp and Paper.
- The upgrades are expected to raise daily kraft production by 11%.
- The mill would need over 130,000 tonnes of additional annual forest biomass to support the higher output.
- Bleaching-chemical use would fall by around 30% and natural gas consumption by more than 5 million cubic metres a year.
- AUX Energy will receive CAD 93,000 to plan a biomass-powered generator project in Fort Frances.
- Weyerhaeuser will receive CAD 33,000 to study production-line upgrades.
- The mill discontinued newsprint production in the first quarter of 2026.
- Combined capital cost of the three upgrade projects is estimated at C$170-180m (USD 121-128m) if the company proceeds.
- The project is expected to create demand for over 130,000 tonnes of forest biomass per year.
- Ontario frames the funding package as protecting over 700 direct and 3,350 indirect forestry jobs amid US tariff pressure.
