Local wood supply in Brazil

In preparation for the pulp factory construction, the LD Celulose joint venture secured FSC®-certified plantations1 covering more than 47,000 hectares to provide the necessary biomass. Currently around 78,000 hectares of plantation are managed including around 17,000 hectares of protected area which are not used for wood sourcing but ensure the protection of flora and fauna. These plantations operate completely in accordance with the guidelines and high standards of the Lenzing Group for sourcing wood and pulp as well as the requirements of the leading certification schemes.

The forest unit responsible for supplying LD Celulose’s wood is in Triângulo Mineiro in the State of Minas Gerais. The area that was transformed into the LD Celulose plantation unit has been used for cattle raising, intensive agricultural activities, and eucalyptus forestry since the 1970s. No native (primary) forest was converted for establishing the LD Celulose plantation. The plantations are more than 800 kilometres from the region that comprises the Amazon rainforest.

Key aspects that compelled Lenzing to enter into the LD Celulose joint venture with Dexco in Brazil were its track record and reputation for environmentally responsible forest management, its tradition of respect for the environment, its experience in responsible and productive forest management, and its extensive knowledge of the Brazilian Forestry Code, which is one of the most stringent in the world. Lenzing makes a point of only working with certified and controlled wood sources to ensure supply chain sustainability. This commitment is being maintained at LD Celulose with Dexco’s forest management expertise.

The Dexco Forest Management Plan was adopted, which is responsible for ensuring compliance with Forest Stewardship Council (FSC®) certification criteria. The FSC® certificate provides the assurance that LD Celulose’s forest management work takes account of aspects such as respect for the rights of indigenous people, the wellbeing of the professionals who work in the forest and local communities, the reduction of environmental impact, and the promotion of native forest conservation and restoration efforts. Lenzing cooperates with NGOs, such as Canopy, to assess the sustainability of its wood supply chain. All these measures ensure that wood sourcing is in line with Lenzing’s Wood and Pulp Policy and grounded in sustainable practices.

The start-up of the pulp mill was completed in 2022. Since Lenzing’s own demand for wood has not yet reached the full amount, some timber harvested from the plantation is sold to the market as logs for saw mills, chips for particle board, and biomass fuel for drying processes.

1 FSC license code: FSC-C006042

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