News
Veracel lays cornerstone for its pulp mill in Bahia - 10.06.03
Veracel Celulose S/A 3 October laid the cornerstone for its pulp mill located in the municipalities of Eunápolis and Belmonte in the extreme south of the state of Bahia. Authorities attending the ceremony included the governor of the Bahia, Paulo Souto, the Minister of Development, Industry and Trade, Luiz Fernando Furlan, Senator Cesar Borges, the state's Industry and Trade Secretary, Otto Alencar, and representatives of Veracel's shareholders - Carlos Aguiar, from Aracruz Celulose of Brazil and Nils Grafström e Bjorn Hagglund, from StoraEnso of Finland-Sweden - as well as executives of other companies from around Brazil.
The laying of the cornerstone comes less than five months after the official announcement of the decision to build the mill, made to Brazilian President Luiz Inácio Lula da Silva on May 8 in Brasilia. Representing an investment of some US$ 1.25 billion, the project includes forestry activities (initiated in 1991), infrastructure and the pulp mill. The startup of the mill, to have production capacity of 900,000 tons per year of bleached eucalyptus pulp, is scheduled for the second half of 2005. All production will be destined for the international market, generating annual foreign exchange earnings for the nation of about US$ 500 million.
The mill is located on a 1.5-million-square-meter plot and will be the largest single-line pulp production facility of its type in the world. The project makes use of modern equipment, control systems and processes to maintain environmental quality. Through a future highway linking it to the city of Eunápolis, the mill will be about 45 Km from the municipalities and 77 Km from Belmonte, contributing to the development of these and other cities in the region of the project. "Veracel's philosophy is to distribute the benefits among the municipalities where the company has its plantations," stated its president, Vitor Manuel Domingues da Costa. Besides Eunápolis and Belmonte, Veracel carries out activities in Canavieiras, Guaratinga, Itabela, Itagimirim, Itapebi, Porto Seguro and Santa Cruz Cabrália.
Training and employment
Because of its location - distant from large urban centers - Veracel's mill will contribute to the creation of jobs and income in a region where there currently are few opportunities. During the construction phase of the project, up to 12,000 direct and indirect jobs will be generated. For the operating phase, some 10,000 direct and indirect work opportunities are foreseen. Currently the company generates approximately 2,000 direct and indirect positions.
In order to contribute to the integrated development of the nine municipalities within its area of influence, the company is carrying out investments during the July 2003 to May 2005 period of R$ 8.3 million in the training of more than 5,500 people in the region. This manpower will be given priority when positions are available, both directly with Veracel and through outsourced services suppliers. "The hiring of this manpower is not a wish: it is a project that Veracel is following up on to ensure that there is compliance," Costa emphasized.Another partnership initiative between the company, the government of the state of Bahia and the Bahia Federation of Industries (FIEB) makes it possible to develop suppliers within the state who satisfy the builders' demands for products and services.
Commitment to sustainable development
The company currently owns 65,000 hectares of eucalyptus plantations in the region. Veracel has set aside nearly half of its 147,000 hectares of forestlands for environmental recovery and conservation. There are 71,000 hectares of Atlantic Forest (Mata Atlântica), of which 6,069 hectares belonging to Veracel Station, the largest private Atlantic Forest reserve (RPPN) in the northeast of Brazil. The Station is recognized by UNESCO as a World Natural Heritage Site and already has been visited by more than 25,000 people. "Another environmental highlight is the Ecological Corridors Project, which will connect the native forest areas that have escaped degradation," Costa noted. Thanks to its attention to the environment, this past June Veracel was awarded ISO 14001 certification for its eucalyptus and Atlantic Forest tree seedling production processes, along with its processes for the harvest, transportation and sale of wood from its eucalyptus plantations.
Corporate social responsibility
The question of social responsibility is seen in the relationship of Veracel with the communities and the environment. The company is investing R$ 3 million, especially in projects that benefit the health and the education of children. These projects currently help approximately 1,500 children between the ages of 4-15 who are in socially risky situations. The training of grade and middle school teachers and the reform and expansion of schools in communities near the mill are short-term projects, among others, that seek development of education in the region.
The company is studying a master plan that will benefit all nine municipalities in the region with improvements in urban infrastructure, especially basic sanitation and the bettering of hospitals and schools. "After we identify the needs, we will implement a plan together with the state government that also has input from the mayors," said Costa.
Through joint public and private efforts, a strict program for combating diseases such as Hanseniasis, still present in the region, will be set up. As a result, a series of investments will be made in basic sanitation and specialized follow-up programs, mainly in nearby rural communities. One such program will be for building sewage treatment systems in the two temporary construction worker communities, a third system in Barrolândia, a district of Belmonte, and a fourth in Itagimirim. After construction is concluded, the temporary housing will be donated to the municipalities. The building materials will be of lasting quality and good technical level, allowing the communities to use them for schools, day care centers, leisure areas etc.
The presence of Federal and state authorities at Veracel's cornerstone laying ceremony not only demonstrated the confidence of the government in the project but also was a reaffirmation of a partnership commitment between private and public enterprise to seek solutions. "Veracel is here to stay. People come and go but the communities remain. And that it is the permanent relationship that we must create," said Costa.