Bracell Cellulose Factory Construction in Bataguassu, MS, Set to Begin Soon

Bracell plans to initiate construction of its cellulose factory in Bataguassu, Mato Grosso do Sul, within the coming months. The $4.5 billion project, featuring 2.8 million tons annual capacity for kraft and soluble pulp, awaits final environmental licensing from state authorities.​

Environmental officials target preliminary license approval by early November, followed by installation permits through Imasul. Secretary Jaime Verruck confirmed the process advances at Semadesc, positioning Mato Grosso do Sul as Brazil's pulp production hub with seven facilities upon completion.​

The facility represents Bracell's major expansion in the state, complementing Arauco's Inocência project and reinforcing the region's 24% share of national cellulose output alongside leading eucalyptus cultivation. Construction commencement hinges on licensing finalization by February 2026.​