Dexco has launched operations at its new LD Celulose factory, a joint venture with Lenzing, representing an investment of USD 1.38 billion aimed at producing sustainable dissolving pulp in Brazil.

Information on the Target

LD Celulose is a newly established factory dedicated to producing dissolving pulp, resulting from a joint venture between Dexco, a leading producer of industrial wood panels, and the Austrian company Lenzing. This state-of-the-art facility officially commenced operations on April 12, following a significant industrial investment of approximately USD 1.38 billion, which encompasses both infrastructure and applicable taxes.

The LD Celulose factory, located in the Triângulo Mineiro region of Minas Gerais, Brazil, is designed to achieve an annual production capacity of 500,000 tons of dissolving pulp. Notably, this production will be entirely allocated to Lenzing's manufacturing units, allowing for a streamlined supply chain and synergy between the partners.

Industry Overview in Brazil

The pulp and paper industry in Brazil has undergone remarkable growth, positioning itself as one of the largest producers globally. This growth can be attributed to Brazil's vast forest resources, favorable climatic conditions