Jul 24 2008
Vale signed yesterday a memorandum of understanding (MOU) with Suzano Papel e Celulose (Suzano) that establishes conditions for a partnership in the Brazilian states of Pará and Maranhão, including the supply of reforested wood by Vale, sale of part of its forest assets and the transportation of the pulp produced by Suzano's new unit, that will be implemented in Maranhão state.
The reforested wood Vale will provide to Suzano is produced by Vale Florestar, a program which aims the protection and recovery of native forest in conjunction with the plantation of industrial species in a total area of 300,000 hectares and the plantation of 165 million trees, already in place in the Southeastern of Pará. The purpose of Vale Florestar is to promote the territorial reorganization, aiming the regional self-sustainable development.
The MOU comprises the sale of Vale's rural properties to Suzano, including preservation areas and part of eucalyptus plantation in Maranhão. These forestry assets will be used to build the forestry base of Suzano's pulp line.
In addition, Vale will provide logistic service, through railroad transportation of pulp to be produced in Maranhão by Suzano, in accordance with the conditions established by the MOU.
The agreement on the basic conditions of the partnership will guide the contracts that will be firmed in the next weeks.
The partnership will promote social and economic development to both involved states, in a segment where the country has strong competitiveness, with focus in the generation of local jobs and sustainability.
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