The plant will be built near Sao Paulo and strengthen Lenzing Group’s backward integration and cost position for its biobased fibers. It is expected to cost $1.3 billion and have an annual capacity of 500,000 tons. The joint venture has also secured FSC-certified plantations covering 44,000 hectares to provide the needed biomass. Start-up is slated for the first half of 2022, at which time the plant will be able to feed 40% of its excess biomass-generated electricity back to the Brazil’s public grid.
Lenzing will own 51% of the joint venture.