Thursday, September 19, 2013

Suzano plans to enter the segment of fluff pulp

Second largest producer of bleached eucalyptus pulp, Suzano Papel e Celulose prepares to enter a new market, the fluff pulp, used in tampons and nappies, with an important innovation: instead of conversion of long fiber, as is traditionally done by the global industry, the company developed a type of fluff obtained from short-fiber, ever produced in their units.
After the success achieved in tests with a big and fairly representative "of feminine absorbent supplier, the company is experiencing now the use of raw material in the production of disposable diapers. Completed this phase, Suzano can initiate the manufacture on an industrial scale of fluff in 2015.
"We conclude the tests with large customers, now in diapers, so we've made a decision," says the Director of investor relations, Tiago Fernandes. In the segment of tampons, tests have shown that it is possible to replace 70% of cellulose fluff, obtained from the traditional long fiber, the new raw material developed by Suzano, which kept the high absorption capacity.
Today, the Brazilian market of fluff rotates between 400 million pounds and 500 thousand tons per year and practically the whole of the demand is met by imports. Aware of this potential, Klabin also intends to start local production, as part of the project of billionaire cellulose in Ortigueira (PR). To obtain this kind of pulp, however, Klabin will use the long fiber as a starting point. The annual production of long fiber in new factory is designed in 400 thousand tons per year.
In terms of price, says the Director of Suzano, it is too early to comment on the policy that should be adopted-the scale of production also is not set and will determine the necessary investments. However, it is known that a ton of fluff is negotiated with differential, upwards of $ 140 to $ 150 in relation to the ton of short fiber. "Let's look at the domestic market initially, but there is opportunity to export," he said. Last year, according to the Finnish consulting Pöyry, global production of fluff was 5.4 million tons and, until 2025, the global demand, with a view to the manufacture of diapers and absorbent, should reach 6.2 million tons per year.
The studies that led to the development of the new type of cellulose were started in 2009, according to Fabio Figliolino, Executive Manager of research, development and innovation of Suzano. Since then, three researchers, a team of 45, dedicated exclusively to this research. "It's one of the great gambles of Suzano in terms of innovation."
Without going into details about the formula of short-fiber pulp fluff, Figliolino account that one of the differences is in the form of delivery of the raw material, which comes in coils (not cut sheets) to the client. The tests were done on the drive from Embu (SP), however the installation or conversion of a line "flex", which can produce fluff or the traditional eucalyptus pulp company, must be made in one of the company's pulp mills.
Suzano is close to reaching full capacity of pulp production of 4.4 million tonnes per year, with the inauguration of the factory of Maranhão, scheduled for the fourth quarter. On paper, the company can produce 1.3 million tons per year.
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