Duratex and Lenzing have announced a joint venture to build the world's largest soluble cellulose production line in Brazil, aiming for a sustainable manufacturing future.

Target Information

Duratex, the largest producer of industrialized wood panels and sanitaryware in the Southern Hemisphere, is expanding into a new sector—soluble cellulose—through a joint venture with the Austrian group Lenzing, a leader in special cellulose fiber production. The new entity aims to produce and market soluble cellulose after establishing the world’s largest industrial line dedicated to this product. The facility will be located within Duratex’s forested area in the Triângulo Mineiro region, near São Paulo, with an estimated total investment of approximately $1 billion. The joint venture will see Duratex holding a 49% stake while Lenzing will hold the remaining 51%. The commencement of the operation is contingent upon obtaining necessary regulatory approvals and engineering feasibility, with groundwork expected to begin in the second half of 2019 and initial production targeted for 2022.

Industry Overview in Brazil

The soluble cellulose industry is gaining prominence as companies and consumers increasingly prioritize sustainability. Brazil, with its vast forest resources and advanced plantation management techniques, is excellently positioned to supply this growing market. The green initiatives of Brazil are driving investments in sustainable materials, allowing local companies like Duratex to leverage their expertise in forestry.

The Brazilian market for soluble cellulose products is expected to expand considerably in the coming years, propelled by increasing demand from the textile sector, which is focusi