Brazilian pulp and paper companies advance industrial expansions

Major Brazilian industrial players in the pulp and paper sector are executing significant capital projects and financial restructuring.

Fibria completed the Horizonte 2 project in Três Lagoas, Mato Grosso do Sul, involving an investment of R$ 7.5 billion. This expansion added a new cellulose production line to its existing complex, aiming for a total capacity of 3.25 million tons per year. The project was notable for its logistical complexity, requiring the construction of new structures alongside an active factory and utilizing a 190,000 m² assembly yard to manage modular components.

Separately, Klabin has announced expectations for improved cash generation starting in 2027. This recovery is tied to the completion of the Monte Alegre unit modernization, which is expected to require approximately R$ 700 million in investments through 2026. While 2026 is viewed as a transitional year with pressured free cash flow, the company anticipates operational improvements and intends to prioritize share buybacks as debt levels decrease.