Jul 17 2009
Vale S. A. (Vale) signed a definitive agreement with Suzano Papel e Celulose (Suzano), related to the MOU dated as July 22, 2008, which established conditions for a partnership in the Brazilian states of Pará and Maranhão, encompassing the supply of reforested wood by Vale, sale of part of its forest assets and transportation of the pulp produced by Suzano's new unit, which will be implemented in the state of Maranhão, as well as an agreement for forest technology partneship.
During 15 years, from 2014 onwards, Vale will supply Suzano with reforested wood produced by Vale Florestar, a program which aims to promote sustainable development in the Amazon region through the protection and recovery of native forest in conjunction with the plantation of industrial species in the Southeastern of Pará.
The agreement also comprises the sale of Vale's forest assets to Suzano, a total area of 84.7 thousand hectares, including preservation areas and eucalyptus plantation in Maranhão, per R$ 235 million.
In addition, Vale will provide railroad transportation service of 1.3 million tons of pulp per year, from Suzano's new unit in Maranhão to the port region in São Luis, Maranhão, through a period of 30 years from 2013 onwards, when the operation might start.
We have also signed a technological cooperation agreement with Suzano, which aims to benefit from synergies between research already developed and used by Vale in the region and the use of technology related to genetic improvement and forest management of Suzano.
The partnership will promote social and economic development to both involved states, in a segment where the country has strong competitiveness, focusing the generation of local jobs and sustainable development.