Bracell's Ambitious Expansion in Brazil: Boosting Tissue Paper Production Capacity by 50% in São Paulo Factory

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Bracell, the Singapore-based company owned by Royal Golden Eagle (RGE), is set to expand its newly inaugurated tissue paper factory in Lençóis Paulista, São Paulo, Brazil.

The factory, which commenced operations at the end of 2023 with an initial investment of R$2.5 billion ( 487.5 million USD), currently has a production capacity of 240,000 tonnes per year from four machines, each with a capacity of 60,000 tonnes.

However, Bracell plans to further increase the factory's capacity by 50% to 360,000 tonnes per year by installing two additional 60,000-tonne tissue paper machines in 2025. This expansion is estimated to require an investment of around R$1 billion ($195.56 million USD), leveraging the existing infrastructure and utilities of Bracell's adjacent pulp mill.

Bracell aims to become one of the market leaders in Brazil, targeting a market share of 20-25% in sales value within three to four years.

The company's strategy involves offering a comprehensive portfolio of toilet paper products, from single-ply to triple-ply, including the recent launch of the premium Supra brand to compete in the high-end market. Bracell plans to leverage its strategic location in São Paulo, which accounts for nearly 50% of tissue consumption in Brazil, and its proximity to the pulp mill that supplies its lines.

Bracell entered the Brazilian tissue market a year ago with the acquisition of OL Papéis, a regional leader with a production capacity of 50,000 tonnes per year, bringing the company's total current capacity to 290,000 tonnes. At OL's operations in Bahia and Pernambuco, Bracell is investing R$100 million($19.5 billion USD) for operational modernization, including the purchase of an additional conversion machine.

The company has retained OL's Familiar toilet paper and Absoluto paper towel brands for its national portfolio, targeting the intermediate market. Bracell has also adopted 3D technology and air capsules between paper layers for its premium Supra line, leveraging synergies from RGE's recent acquisition of China's Vinda International.

Bracell Limited is a specialty cellulose company, producing specialty-grade dissolving wood pulp and rayon-grade dissolving wood pulp.

Royal Golden Eagle is a global integrated, resource-based industrial group, with businesses in paper , palm oil, viscose, construction, and energy.