SAO PAULO, March 18 (Reuters) - Management at Fibria SA, the world's largest eucalyptus pulp producer, presented a plan to invest 8 billion reais ($2.4 billion) in the Três Lagoas plant to board members ahead of the expected June deadline, Valor Econômico newspaper reported on Wednesday.
The massive expansion plan, which will allow Fibria to double capacity at Três Lagoas, was expected to be presented to the board around June, Valor said, without saying how it obtained the information. Board approval to the program is necessary to put the plan in motion, the paper said.
The move allows Fibria to implement a second line at Três Lagoas by 2017 and take advantage of an expected increase in demand for pulp in Asia and some emerging markets nations. According to Valor, rival El Dorado also has plans to increase a plant it owns in Três Lagoas, which is located in the country's midwestern region.
Efforts to speak to the media offices of Fibria and El Dorado were unsuccesful. Both projects would increase the global supply of eucalyptus pulp by about 4 million tonnes, Valor said. (Reporting by Guillermo Parra-Bernal; Editing by Chizu Nomiyama)