News
President Lula will inaugurate the Veracel mill - 09.27.05
President Luiz Inácio Lula da Silva is scheduled to inaugurate the Veracel pulp mill, a joint venture of Aracruz Celulose and Stora Enso located in Eunápolis, in the south of Bahia, on September 28. The operating tests of the facility began in May - three months ahead of time - and currently daily production is about 2,200 tons, earmarked for the international market. The result of a US$ 1.2 billion investment, the project is generating nearly 3,000 direct jobs and 7,000 indirect permanent jobs in the region.
"The entire project is notable for being innovative, not only in construction deadlines but also in new installation techniques. One example was the manpower program that involved the training of 6,000 persons for the construction project and taught 200 young people about pulp production and industrial maintenance techniques," said Veracel's president and CEO, Renato Guéron. The professional qualification program was conducted in partnership with the government of Bahia, the Federation of Industry of the State of Bahia (FIEB) and SENAI. Another important initiative, also in partnership with FIEB, was opening up participation of Bahian suppliers during the mill's various construction and maintenance phases, involving nearly 100 local companies.
Supplied by wood that comes exclusively from sustainable eucalyptus plantations, the building of the Veracel mill took advantage of the experience of Aracruz and Stora Enso, two of the leaders of the world pulp and paper industry. Making use of the most modern equipment, installations, construction methods and environmental control systems, "the mill represents the state of the art in terms of pulp manufacturing," said Guéron.
Geographical aspects - an average distance of 45 km from the eucalyptus plantations and 64 km from the marine terminal - also contribute to make the project feasible. Other attractions include favorable climate conditions and the availability of land for planting eucalyptus trees in harmony with Atlantic Forest remnants in the region. The company uses about 50% of its land - about 71,000 hectares - for the recovery and conservation of native forests.
Created in 1991, by Odebrecht, Veracruz Florestal Ltda changed its name to Veracel Celulose S/A in 1998 with the entry of Sweden's Stora into the project; one year later, Stora merged with Enso, of Finland, creating Stora Enso. In 2000, Aracruz joined the group and, in 2003, purchased 50% of the shares of the company with Stora Enso owning the other 50%.
Third party funding for building the mill has come from Brazil's National Economic and Social Development Bank (BNDES) and international lending organizations such as the European Investment Bank (EIB) and the Nordik Investment Bank (NIB), partners who have been decisive to ensure the realization of the industrial project.
The support of the government of Bahia also has been of fundamental importance. For example, this partnership made it possible for the state to invest in the paving of a stretch of the BA-275 highway that links the Veracel mill in the BA-001 highway in Belmonte, near to the marine terminal.
Sustainability
Respect of the environment, the generation of jobs and income, the fostering of a better quality of life for the population and assuring a return for shareholders in compliance with the principles of sustainability are some of the commitments of the project. Since last year, R$ 21 million has been invested in the social sphere, encompassing environmental sanitation, education and health programs that benefit thousands of residents.
With its forestry processes already certified under ISO 14001, Veracel currently is awaiting certification by the Brazilian National Forestry Certification Program (CERFLOR), which verifies the company's procedures regarding the management of environmental resources and its respect of neighboring communities.
The shareholders
Aracruz Celulose is the world's leading producer of bleached eucalyptus pulp for the paper industry. One of Brazil's largest exporters, its pulp is destined for the production of high added value printing and writing, tissue and specialty papers. It owns about 255,000 hectares of eucalyptus plantations intermingled with approximately 136,000 hectares of native reserves. The company's operations extend into the states of Espírito Santo, Bahia, Minas Gerais and Rio Grande do Sul and its annual pulp production is on the order of 3 million tons. With the addition of 450,000 tons from its share of the Veracel production of pulp, Aracruz will respond for 30% of the worldwide supply the product.
Stora Enso is the largest producer in the world of paper and card. It owns manufacturing facilities in Europe, Asia and United States. It produces 16.4 million tons per year of paper products as well as 7.7 million cubic meters of solid wood products. The company employs 45,000 persons in 40 countries on five continents. In 2004, its sales totaled 12.4 billion euros. The 450,000 tons of pulp that it will receive from its stake in Veracel will be sent to its manufacturing plants in Europe and Asia for the production of high added value printing and writing and specialty papers.
Veracel Station: a valuable reserve
Located 15 km outside of Porto Seguro, Veracel owns the Veracel Station, the largest Atlantic Forest Private Natural Heritage Reserve (RPPN) in Brazil. Containing 6,069 hectares, the station is inserted in one of the regions with the highest diversity of trees species on the planet, with approximately 450 different species per hectare. At the location, a number of rare and threatened species can be found, such as pau-brasil, jacarandá and maçaranduba. Also notable at the station is the large number of species of fauna, with some 350 vertebrate species having been identified there. Among the species identified are a number that are of interest in terms of conservation, whether for being rare, threatened with extinction, endemic or even new to science.