Fibria starts investing in a new forest base in Três Lagoas (MS) to anticipate the operating start-up of the second industrial unit in that city from 2016 to 2014, depending on market conditions.

The expansion project envisages the construction of a new cellulose production line beside to the existing Três Lagoas plant, with annual 1.5 million ton production capacity, which could reach 1.75 million tons in the medium run through operating efficiency increase. The project will require approximately BRL5.8 billion of total investment and the socio-environmental licensing process has already begun.

The project will require 150,000 hectares of planted forest, 50% of which with own property and the remainder 50% with third party-owned property through leasing and partnership arrangements. Fibria has already an excess of 30,000 ha in plantations for the operation of Três Lagoas unit and still this year will lease 45,000 ha. The remainder 75,000 ha will be ensured through land purchasing and land leasing agreements over the next few years. The project will create approximately 2,900 direct and indirect jobs.

Fibria's President, Mr. Carlos Aguiar, has stated that the project will represent a new growth cycle for the company. “Três Lagoas II encompasses Fibria's long-term vision, which is to reach an annual cellulose production capacity of 10.7 million tons by 2025”, he has said. Currently, Fibria's three industrial units account for a combined annual production capacity of 5.4 million tons.