Brazil's Fibria approves $53 mln diesel supply contract
SAO PAULO Jan 7 (Reuters) - Brazil's Fibria Celulose SA , the world's largest producer of eucalyptus pulp, approved a 141.45 million reais ($52.78 million) diesel fuel supply contract with Ipiranga Produtos de Petróleo S.A, according to a securities filing on Wednesday.
The contract approved by the company's board of directors is valid for three years and the fuel will be used for harvesting equipment and to transport wood from the Tres Lagoas mill, the company's newest.
The contract will result in an 8 percent reduction in Fibria's diesel fuel costs, more time to pay for fuel and investment in more storage capacity, the filing said.
($1 = 2.68 reais) (Reporting by Caroline Stauffer)
© Thomson Reuters 2016 All rights reserved.