BRAZIL – Duratex, the largest producer of industrialized wood panels and floors, ceramics and sanitary metals from the Southern Hemisphere, announces entry into a new segment of activity, dissolving wood pulp (DWP), in association with the Austrian group Lenzing, leader in the production of special fibers of cellulose.

The new company aims to operate in the production and commercialization of this product after the construction of the largest soluble cellulose industrial line in the world, which will be installed in the Duratex forest area in the Minas Gerais region, near São Paulo. The total investment planned for the project is approximately USD 1 billion. The land and forest areas in Minas Gerais represent an important part of Duratex’s investment, in addition to the company’s financial outlay.

The joint venture that will operate the factory and the forest will be owned by Duratex and Lenzing, with a 49% and 51% share, respectively. The approval of the operation and the constitution of the new company are subject to the authorizations of the competent bodies, as well as to the viability of the engineering planning. The decision of when the plant will be built will be taken in the second semester of 2019 and it is anticipated that the first production will occur in 2022.

In addition to the importance for the long-term growth of the company, the project represents a decisive step in the process of transforming the forestry business. Duratex contributes to the new venture its forestry knowledge and capacity, which are reflected in the efficient management of the plantations, with productivity indexes above the Brazilian and international average. At the same time, by allocating approximately 43,000 ha of FSC® certified woods to the soluble cellulose production, Duratex will complete the rationalization of its forest assets and make the company even more competitive, without affecting its capacity to supply its wood panel factories in the region with its own wood.

The factory also places the company in a prominent position in the sustainable products market, which tends to grow, even more, in the coming decades in the face of the constant search for sustainable solutions.

“Projects like this are the result of our strategic plan and the commitment of our team to chart the future of Duratex. The company is recognized for financial strength, quality, innovation and sustainability, the result of a history built over more than six decades. Now, we are ready and structured to maintain our leadership and expand our business, thus reinforcing Duratex’s commitment to the development of Brazil, fostering the economy through the generation of jobs and investments,” says Antonio Joaquim de Oliveira, president of Duratex.

“The partnership with Lenzing, in the largest and most competitive soluble cellulose industrial line in the world, is an honor for Duratex. Working with Lenzing, a global benchmark in technology, high quality and corporate governance, leaves us very satisfied that this joint venture will be a success”, concluded Mr. Oliveira.