Suzano continues to focus on its pillar of structural competitiveness to optimize its cost and expense structure. The result of this focus was observed in the performance of pulp cash cost, which has been registering year-over-year declines every quarter and presenting a continuous downward trend in line with our cash cost targets of R$ 570/ton2 in 2018 and R$ 475/ton2 in 2021-2022. Adjusted EBITDA1 from pulp reached R$ 723/ton in the first quarter of 2017 and was an industry highlight, as also was the case of our operating cash flow3 of R$ 521/ton. In the paper segment, we have yet to see a recovery in Brazilian demand, but Suzano has been successfully increasing its local market share, supported by the Suzano Mais Program, which seeks to forge closer relations with end consumers. In addition, in the second half of the year, we will launch tissue production at the Imperatriz (Maranhão state) and Mucuri (Bahia state) units, which is a paper segment with strong potential for creating value for the company. We believe that diversifying our asset base through projects with lower exposure to unmanageable variables (exchange rate and commodity prices) will reduce the volatility of our results and in turn make the company even more competitive. click Read More below for additional detail
Paper Excellence Canada Holdings Corporation (“Paper Excellence”) has taken a significant step forward on the road to acquiring Catalyst Paper Corporation. On February 7, 2019, the Canadian Competition Bureau issued a no-action letter in respect of Paper Excellence’s previously announced agreement to acquire Catalyst Paper.
Catalyst and Paper Excellence can now move forward with preparations to complete the transaction, subject to the satisfaction or waiver of remaining customary closing conditions.
The transaction involves the purchase of all of the shares of Catalyst. Catalyst owns manufacturing facilities in Crofton, Port Alberni and Powell River, a distribution centre in Surrey and headquarters in Richmond, BC.
“This acquisition demonstrates Paper Excellence’s continuing deep commitment to the province of British Columbia,” states Brian Baarda, Paper Excellence’s Chief Executive Officer. “Once finalized, this acquisition confirms Paper Excellence’s position as a key player within Canada’s forest industry and will benefit all of the stakeholders involved, including our employees, suppliers, customers, the communities where we operate, as well as the pulp and forest products industries.”
Barclays acted as exclusive financial advisor to Paper Excellence on the transaction.