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
Suzano says it is not yet ready to merge its own consumer-goods operations with Arbex, the tissue joint venture it formed with Kimberly-Clark covering 22 plants in 14 countries. Executive vice-president Pablo Machado said a merger could be considered once Suzano judges its own tissue business has matured and Arbex has captured its planned efficiency gains. The group is targeting USD 175m in operational efficiency at Arbex over three years.
Why this mattersA future combination would consolidate Suzano's downstream tissue footprint with Kimberly-Clark's international hygiene assets, deepening its shift beyond pulp.
- Arbex, the Suzano-Kimberly-Clark joint venture, comprises 22 industrial units across 14 countries making and selling hygiene paper products.
- Suzano is targeting USD 175m in operational efficiency gains at Arbex over three years, a goal stated earlier in 2026 by CEO Beto Abreu.
- Suzano acquired Kimberly-Clark's Brazilian tissue operations in 2023, including the Neve brand and the Mogi das Cruzes mill with 130,000 tonnes a year of semi-finished paper capacity.
- Suzano says it cut costs at the Mogi das Cruzes plant by around 40% within six months of taking it over.
- Executive vice-president Pablo Machado said Suzano does not currently see merit in combining operations, citing unrealised gains still to be captured at Arbex.
- Suzano said on 21 October 2026 it will report Consumer Goods as a segment separate from Pulp & Paper from Q3 2026 onward
- The change follows the creation of Arbex and introduces a new methodology allocating pulp costs consumed by the Consumer Goods unit
- Historical data from Q1 2025 to Q2 2026 will be restated pro forma, with no impact on previously reported consolidated results
- Suzano is changing the methodology for costing pulp consumed by the Consumer Goods unit
- Suzano will restate pro-forma quarterly segment data from Q1 2025 to Q2 2026 to preserve comparability
- Suzano says the segment-reporting changes do not alter previously reported consolidated results
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
Suzano will raise pulp prices by USD 50 per tonne in Europe and the Americas from October 2026, with a smaller rise of USD 20 per tonne in Asia, according to media reports. The Brazilian producer disclosed no volume or contract detail.
Why this mattersHigher pulp costs feed through to fibre-based packaging producers' input costs, pressuring margins or prompting further price rises downstream.
- Pulp prices rise by USD 50 per tonne in Europe and the Americas from October 2026.
- Pulp prices rise by USD 20 per tonne in Asia from October 2026.
- The increases were reported on 22 September 2026.
- European short-fibre pulp reference price to reach USD 1,360 per tonne from October
- Asia pulp price range to reach USD 590-600 per tonne from October
- Previous Americas/Europe increase of USD 50 per tonne took effect in May 2026
- Previous Asia increase of USD 20 per tonne was announced less than a month before this one
- The USD 20 per tonne Asian pulp price rise taking effect in October is the second such increase in under a month
- Suzano is described as the world's largest producer of eucalyptus short-fibre pulp
- Suzano's September 2026 Asian increase of USD 20 a tonne was its first Asian rise since April 2026
- UBS BB sees a market floor near USD 550 a tonne in China, with a possible new range of USD 580-590 a tonne
- Suzano reported adjusted EBITDA of BRL 4.7bn (USD 910m) for the second quarter of 2026
- Indonesia revoked environmental licences from some pulp producers and Asia Pulp & Paper delayed its OKI 2 project, limiting new supply
Suzano has released its first report under the Taskforce on Nature-related Financial Disclosures framework, identifying about 388,000 hectares of forest land with some level of nature sensitivity across its operations. The company says the findings will now feed into its Nature Strategy, guiding conservation, restoration and territorial-planning decisions, including its existing goal to connect 500,000 hectares of native vegetation fragments in the Cerrado, Atlantic Forest and Amazon by 2030.
Why this mattersNature-related disclosure is becoming a reference point for investors and customers assessing forestry-based packaging supply chains for biodiversity and land-use risk.
- Suzano identified approximately 388,000 hectares of forest area with some level of nature sensitivity in its first TNFD report
- The company used the LEAP methodology (locate, evaluate, assess, prepare) alongside tools such as ENCORE and the Natural Capital Protocol
- Suzano has followed TNFD since 2021 and was among 40 institutions supporting its 2023 launch
- The company has a separate goal to connect 500,000 hectares of native vegetation fragments in the Cerrado, Atlantic Forest and Amazon biomes by 2030
- Findings are said to now inform Suzano's Nature Strategy, conservation and restoration prioritisation, and investment decisions
- The TNFD report initially covers Suzano's direct operations in Brazil only
- The report reinforces Suzano's Nature Strategy presented in November 2025
- Suzano became a TNFD Early Adopter in January 2024
- The report and related indicators are published via Suzano's Sustainability Report and Indicators Centre online
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
Suzano has tightened its deleveraging target to USD 11bn net debt and leverage below 2.5x net debt/EBITDA, from a previous USD 12bn goal, after ending the second quarter of 2026 with net debt of USD 12.8bn and leverage of 3.4x. The pulp producer will cut 2026 capital expenditure to USD 2.1bn (BRL 10.9bn), about 18% below 2025, pay only the minimum mandatory dividend, be more selective on buybacks and review sales of non-core assets. The targets were set out in a presentation for the J. Safra Investment Conference on 22 September 2026.
Why this mattersA tighter debt target and capex cut at a top global pulp producer signals caution as new Latin American and Chinese capacity threatens pulp prices and margins.
- Net debt target tightened to USD 11bn and leverage to below 2.5x net debt/EBITDA, from a previous USD 12bn goal.
- Net debt was USD 12.8bn and leverage 3.4x at the end of the second quarter of 2026.
- 2026 capital expenditure is projected at USD 2.1bn (BRL 10.9bn), about 18% below the USD 2.6bn (BRL 13.3bn) spent in 2025.
- Of the 2026 capex, USD 1.4bn (BRL 7.3bn) is for maintenance of existing operations.
- While deleveraging, Suzano will pay only the minimum mandatory dividend and be more selective on share buybacks.
- Revenue for the 12 months to June 2026 was about USD 9bn with adjusted EBITDA of USD 3.8bn, a 42% margin.
The European Commission has unconditionally approved the USD 3.4bn tissue and personal care joint venture between Suzano and Kimberly-Clark, covering international operations including the Kleenex brand. Suzano will hold 51% of the combined international tissue business. The deal, announced in June 2025, still awaits clearance from the UK competition authority.
Why this mattersClearance removes a major regulatory hurdle for one of the tissue sector's largest consolidation deals as producers seek scale amid overcapacity.
- European Commission approved the joint venture unconditionally on 21 September 2026
- Deal value stated at USD 3.4bn
- Suzano will hold 51% of the combined international tissue business, including Kleenex
- Transaction was first announced in June 2025
- UK Competition and Markets Authority review is still pending
Suzano has completed a multi-year expansion of its Port of Santos pulp export terminal, run jointly with DP World, raising its annual throughput capacity from 3.6 million to 5 million tonnes. Combined with its separate Terminal 32 facility, Suzano's two terminals at Santos can now handle up to 6.6 million tonnes of pulp a year, after the company set a one-day loading record of 39,100 tonnes on 20 September 2026.
Why this mattersHigher Santos throughput removes an export bottleneck for Suzano's pulp volumes and underpins the reliability of Brazilian seaborne supply to European buyers.
- Annual throughput capacity at the Santos terminal rose from 3.6 million to 5 million tonnes after a multi-year upgrade.
- Suzano loaded a record 39,100 tonnes of pulp onto two vessels in 24 hours on 20 September 2026 at the terminal, operated jointly with DP World.
- Warehouse area was expanded from 36,000 sqm to 51,000 sqm, raising static storage capacity to up to 160,000 tonnes.
- Two additional 40-tonne overhead cranes were installed at the facility.
- Combined with its separate Terminal 32, Suzano's two Santos terminals can now handle up to 6.6 million tonnes of pulp a year.
- Suzano has shipped 3.6 million tonnes of pulp through Santos so far in 2026, more than the annual output of its Três Lagoas unit.
Suzano has completed the first phase of a harvester teleoperation pilot at its forestry unit in Mato Grosso do Sul, Brazil, allowing an operator to remotely run a harvesting machine up to 350 kilometres away from a control tower in Ribas do Rio Pardo. Developed with Komatsu and S4E TECH since April 2026, the pilot harvested 12,000 trees and has trained seven operators so far.
Why this mattersRemote harvesting could cut labour and safety costs in wood supply, a key input cost for pulp and paper producers.
- Operators control a harvesting machine remotely from Suzano's forestry control tower in Ribas do Rio Pardo, Mato Grosso do Sul
- Testing began in April 2026 and the first phase harvested 12,000 trees
- The system allows an operating radius of up to 350 kilometres between operator and machine
- Project developed with Komatsu and S4E TECH combining teleoperation technology with forestry processes
- Seven employees are currently trained to operate the remote system
- Satellite links connect the control tower and harvester because of limited telecoms infrastructure in harvest areas
- Mato Grosso do Sul operations harvest 19 million cubic metres of wood a year across about 100,000 hectares with over 1,000 operators
- A pilot phase with gradual scale-up of the teleoperation system is due to start in the coming months
Suzano has acquired a 10 per cent stake in Imetame Logística Porto, a port complex under construction in Espírito Santo, Brazil, through an agreement with Grupo Imetame. Suzano will also cede strategically located land to the project, without affecting operations at its Aracruz pulp unit. The deal is subject to customary closing conditions including clearance from Brazil's antitrust authority CADE.
Why this mattersAccess to a deep-water port hub could strengthen export logistics for Suzano's pulp and paper operations in Espírito Santo.
- Suzano acquired a 10 per cent stake in Imetame Logística Porto via agreement with Grupo Imetame
- The port hub has a depth of 17 metres and is designed for five specialised terminals
- General cargo operations are expected to start in early 2027
- A container terminal joint venture with Hanseatic Global Terminals, the terminal division of Hapag-Lloyd, is expected to be ready by mid-2028
- Suzano will cede strategically located land to the project without affecting its Aracruz unit's operations
- Completion is subject to customary conditions including approval by Brazil's antitrust authority CADE
- The port's five specialised terminals are designated for containers, general cargo, solid bulk, liquid bulk and ship-to-ship transfer.
The general superintendence of Brazil's competition authority Cade has gathered more than 2,000 pieces of evidence in an investigation into the alleged systematic exchange of salary, pay-rise and benefits data between HR executives at more than 50 large companies between 1994 and 2021, among them Klabin and Suzano. People following the case say the technical staff is weighing whether to recommend that Cade's tribunal convict the companies, and whether the conduct amounts to a cartel; a finding against them could bring fines of up to 20% of gross revenue in the year before the alleged infringement, plus damages claims in court. Several of the companies say they comply with competition law and describe the exchanges as benchmarking, and some argue Cade has no jurisdiction over the practice.
Why this mattersA conviction would expose two major Brazilian forest-products groups to fines measured against group revenue and make labour-market information sharing an antitrust risk sector-wide.
- Cade's general superintendence has collected more than 2,000 pieces of evidence in the case
- More than 50 companies are under investigation, including the listed groups Klabin and Suzano
- The alleged exchanges of salary, pay-rise and benefits data ran from 1994 to 2021
- A conviction could bring fines of up to 20% of gross revenue in the year before the alleged infringement began, and open the way to damages claims in court
- The investigation began in 2020 from a leniency agreement with a company whose name is confidential; the administrative proceeding was opened in 2024
- Of the companies contacted by Folha, 16 replied and generally said they comply with the law, 12 declined to comment and 30 did not respond
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.
International labour federations held their first multisectoral meeting in Rio de Janeiro on 15 September 2026 to coordinate union organising across the supply chains of Klabin and Suzano. Participants from the ITF, BWI, IndustriALL Brasil and UNI Americas reviewed the state of union organisation at each company and drew up joint action plans. The initiative aims to align strategies among unions from different sectors linked to the two companies.
Why this mattersCoordinated cross-border union organising raises the prospect of joint labour action across forestry, pulp and packaging supply chains, a new pressure point for two of Brazil's largest producers.
- First multisectoral union meeting on Klabin and Suzano supply chains held 15 September 2026 at ITF headquarters in Rio de Janeiro.
- Participating organisations: International Transport Workers' Federation (ITF), Building and Wood Workers' International (BWI), IndustriALL Brasil and UNI Americas.
- Attendees reviewed the state of union organisation at each company.
- Participants developed specific action plans for the Klabin and Suzano supply chains.
- ITF described the meeting as an innovative approach to building union strategy across supply chains spanning multiple sectors.
Suzano and two subsidiaries asked the US Court of International Trade in February 2026 to order Customs and Border Protection to reopen and refund import entries that had carried tariffs, days after the US Supreme Court struck those tariffs down. The court ruled on 20 February 2026 that the International Emergency Economic Powers Act did not authorise the president to impose them. CBP plans to open the refund phase covering court-ordered reliquidations on 6 October 2026, after a delay from August.
Why this mattersA refund would return tariff costs on US-bound shipments and set the procedural path for other exporters waiting on court-ordered reliquidation.
- Suzano and two subsidiaries filed at the US Court of International Trade in February 2026, seeking an order for CBP to reliquidate tariffed import entries
- The US Supreme Court ruled on 20 February 2026 that the International Emergency Economic Powers Act did not authorise the tariffs
- CBP's next refund phase, covering court-ordered reliquidations, is due to start on 6 October 2026 after being postponed from August
- The US government has appealed the broader reliquidation order to the US Court of Appeals for the Federal Circuit
- The administration argues CBP cannot reopen a finally liquidated entry without a court order
