Lenzing will hold 51% of the joint venture which will operate the mill, while Duratexâ€™s share will be 49%. The estimated cash investment by the joint venture for the construction of the DWP mill is expected to be around above US$ 1 billion. The joint venture will supply the entire volume of dissolving wood pulp to the Lenzing Group. This step is an important landmark in the groupâ€™s ambition to grow its specialty fibres business.
Lenzing Group, a market leader in specialty cellulosic fibres, and Duratex, the largest producer of industrialized wood panels of the Southern Hemisphere, have agreed on the conditions to form a joint venture to investigate building the largest single line dissolving wood pulp (DWP) plant in the state of Minas Gerais, close to Sao Paulo, Brazil.
The joint venture will investigate the construction of a 450,000 t DWP plant, which is expected to become the largest and most competitive single line DWP plant in the world. For the future operation, the two companies have secured a plantation of 43,000 hectares that will provide the FSC certified biomass. The plantation is fully in line with Lenzingâ€™s wood and pulp sourcing policy. The basic engineering and the application for required permits and merger clearances will now be started.
Duratexâ€™s Chief Executive Officer Antonio Joaquim de Oliveira quoted that, â€œProjects of this nature are the result of our strategic plan and of our teamâ€™s effort towards drawing Duratexâ€™s future. The Company is known for its financial solidity, high quality, innovation and sustainability; the results of a history spanning over six decades.â€ â€œThe partnership with Lenzing for the construction of the largest single line dissolving wood pulp plant in the world is an honour for Duratex. Working with Lenzing, a global benchmark in technology, high quality and corporate governance makes us very proud. We are sure that this joint venture is going to be successful.â€
Stefan Doboczky, CEO of Lenzing Group said that, â€œSpecialty cellulosic fibres are an important contribution to make the global textile industry more sustainable. In line with our corporate strategy sCore TEN we are committed to strong organic growth in this field. We are pleased that with Duratex, a known leader in sustainable forestry management, we have a strong partner in this joint venture. Together we will create a very sustainable and competitive raw material base for Lenzingâ€™s global expansion plans.â€
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