(News from RISI) – Suzano’s board has approved a Real 346.4 million ($105.8m) loan with the Brazilian Northeast Bank (Banco do Nordeste) to be used in the construction of two tissue paper production units in the country – one in Imperatriz, Maranhão state, and another in Mucuri, Bahia state.
According to the company, the loan will be amortised in up to 132 monthly instalments due after a grace period of 48 months.
The interest rate was fixed at 10% per year, due quarterly during the grace period and monthly during the amortization period.
Suzano’s total investment in the tissue projects is estimated at Real 425m, including two paper machines, each with capacity to produce 60,000tpy of paper.
The equipment will be supplied by Voith. Both Imperatriz and Mucuri tissue machines will produce jumbo rolls to be supplied to toilet paper converters in the northeast region of Brazil.
Production at Imperatriz is expected to begin in the third quarter of 2017 and the Mucuri machine should start operating in the fourth quarter of the same year.