The Lenzing Group and Durate announced that they will build a 500,000 t dissolving wood pulp plant in the State of Minas Gerais, near Sao Paulo (Brazil). The start-up is planned for the first half of 2022. In the joint venture, Lenzing holds a 51%, Duratex a 49% stake.

The expected industrial CAPEX will be approx. USD 1.3 billion (based on current exchange rates and customary tax refunds). The project is financed through long-term debt.

The corresponding financing contracts are expected to be concluded at the end of the first quarter of 2020.