Suzano announced the construction of a new plant with annual production capacity of 2.3 million tons of eucalyptus pulp. The unit will be built in the municipality of Ribas do Rio Pardo, in Mato Grosso do Sul state, and should start production by the end of the first quarter of 2024. The project estimates industrial investments of BRL 14.7 billion, making it one of the private-sector investments currently under development in Brazil. The initiative, called “Cerrado Project”, will expand Suzano’s current pulp production capacity, of 10.9 million tons, by approximately 20%. The industrial unit in Ribas do Rio Pardo also will be the company’s most competitive. The plant will have the capacity to sell approximately 180 MWave of surplus energy to Brazil’s power grid. The unit should become Brazil’s first fossil-fuel free pulp and paper plant, representing a new milestone in ecoefficiency and effectively. The consummation of the project, which will result in the world’s larger plant with a single eucalyptus pulp production line, is still subject to conditions precedent, such as complying with the parameters established in the company’s Financial Policy and negotiations with suppliers. The main funding source of the project will be Suzano’s cash generation, which could be complemented by financing, provided the cost and term conditions are attractive. The project should create around 10,000 direct jobs during the peak of construction. After its conclusion, the new unit is expected to employ 3,000 people, and support development of the region’s entire economic chain.