The market will start to follow the execution of the project announced by the founder of J&F The two main companies in the sector listed on the Stock Exchange fell on Monday influenced by the exchange rateBoth stocks have accumulated more than 9% growth in 2024, reflecting sector optimism.
The announcement made on Monday by J&F’s founder, Wesley Batista, that he plans to invest R$ 25 billion in the implementation of a second Eldorado Brasil Celulose factory in Mato Grosso do Sul, comes at a time of fluctuation in the dollar that puts pressure on companies in the sector.
Also, the price of cellulose remains strong and encourages a wave of inaugurations across Latin America. Suzano (SUZB3) is also investing in the region in the so-called Cerrado Project of R$ 48 million in Ribas do Rio Pardo (MS), a factory that is expected to produce 2.4 million tons per year.
The global leader in short fiber cellulose confirmed last Friday (19) the price increase for cellulose in Asia, Europe, and North America starting in May.According to Ilan Arbetman, an analyst at Ativa Investimentos, the market will start to follow the execution of the project announced by the founder of J&F.
“Now it has become a matter of execution. How will the Capex allocation (investment in the new factory) be done? There is talk of possible completion by 2026. We will keep an eye on it,” he commented.
AdvertisementInvest in opportunities that match your goals. Register with Ágora InvestimentosOn this Monday (22), the two main companies in the sector listed on the Stock Exchange fell influenced by the exchange rate. Klabin (KLBN11) dropped 2.19%, ranking among the main falls in the Ibovespa.
Suzano fell less sharply (-1.05). The dollar recorded a 0.59% decrease, closing at R$ 5.1687.On the other hand, both stocks have accumulated more than 9% growth in 2024, reflecting the market’s optimism about the sector’s prospects.
Short x Long FiberValter Bianchi Filho, from Fundamenta Investimentos, believes that Eldorado Brasil Celulose’s investment will increase Brazil’s prominence in the sector, which has been gaining competitiveness in the production of short-fiber cellulose.
For him, J&F’s investment, when ready, should negatively impact Nordic producers of long fibers.”It is important to note that there was expected to be a certain excess of cellulose supply in the world for this year, a hypothesis that was not confirmed but was probably just postponed to next year,” said Bianchi Filho.
Control disputeThe announcement of the construction of a second production line in Três Lagoas, Mato Grosso do Sul, by Eldorado Brasil Celulose was made by Wesley Batista, founder and shareholder of J&F Investimentos during the Brazil Today Seminar, held by Esfera Brasil.
The project implementation was delayed due to a six-year legal dispute for control of the company between J&F and Indonesia’s Paper Excellence. However, Batista expressed confidence that the project will move forward.
The new production line will increase Eldorado’s annual cellulose production from 1.8 million to about 4.4 million tons, creating 10,000 jobs during construction and 2,000 permanent jobs after completion.Our editors recommend these contents for you to invest even better”
