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Eternali starts woodchip business in Brazil

Eternali starts woodchip business in Brazil
Eternali starts up wood chipping operations in Moju, State of Pará, Brazil (photo courtesy Eternali).

Sweden-headed wood fibre supplier Skogsaktiebolaget Eternali (Eternali) has launched a new woodchip business area focused on supplying biomass to domestic customers in northern Brazil.

The new business area is formed with customer orders in place and the acquisition of land and chipper for a chipping terminal located in the city of Moju, State of Pará in northern Brazil.

The first delivery to customers will take place at the beginning of July 2024.

This is an important step for Eternali. We have always planned to evaluate the large domestic market for biomass from wood chips. After thorough analysis and effective sales efforts, we today have customer orders in place and have invested in a robust production facility with a great location and also have a highly skilled team on site, said Andreas Forssell, CEO of Eternali.

Large domestic market

The Brazilian market for woodchips is one of the largest in the world. A major contributing factor is the focus on green energy and biomass – nearly 5 percent of the country’s energy was produced from biomass in 2023.

The start-up of the chipping operation in northern Brazil means that Eternali has acquired land on the outskirts of Moju with great logistical solutions to customers both by water and by land.

Additionally, a strong woodchipper with high production capacity has been acquired and a team has been recruited to operate the business.

The first delivery of biomass will be to JBS Foods, one of the world’s largest meat producers with large operations in Brazil.

Our newly established production facility, combined with the customer relationships we have worked up for some time now, truly creates a shortcut to a huge market for us. Our production capacity for our operation in Moju is over 70,000 tonnes annually. And that’s from just one operation and woodchipper. With the customer agreements we already have as well as the ones we’re working on, we expect this acquisition to pay off within a year, said Andreas Forssell.

The new operation in Moju is close to Belém, where Eternali’s Brazilian office is located. The operation is in a geographic area with several sawmills, providing good access and a favorable price for raw materials – logging- and sawmill residues.

The new business unit including land- and machinery acquisition is financed by the company’s cash reserves.

Not only can we immediately start delivering to and invoicing customers from our Moju business, but we also have several potential customers to negotiate new agreements with, which provides good expansion opportunities in other locations where we could expand the business area and replicate the concept, ended Andreas Forssell.

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