SAO PAULO, May 15 (Reuters) - Brazil’s Fibria Celulose SA, , the world’s largest producer of eucalyptus pulp, has approved a 7.7 billion reais ($2.6 billion) expansion of its Tres Lagoas mill in the southern state of Mato Grosso do Sul.
The so-called Horizon 2 project will include a new line of bleached eucalyptus pulp with 1.75 million tonnes per year capacity, the company said in a late Thursday securities filing. The new line should start producing in late 2017.
Fibria said Horizon 2, a project it has been mulling for years, will be funded with free cash flow and financing “obeying the limits laid down in the company’s debt management policy.”
Fibria currently operates four factories with a pulp production capacity of 5.3 million tonnes per year, including a joint venture with Finland’s Stora Enso in Bahia.
$1 = 3 reais Reporting by Aberto Alerigi Jr; Writing by Caroline Stauffer