Eldorado Brasil Leaves 2.6 Million-Tonne Pulp Expansion Without Construction Timeline

Eldorado Brasil Celulose has yet to announce a construction timeline for its planned second pulp production line in Três Lagoas, Mato Grosso do Sul, as the company faces increased financial obligations following a change in ownership.

The proposed expansion would add 2.6 million tonnes of annual pulp production capacity, raising Eldorado’s potential total output from 1.8 million to 4.4 million tonnes. The company has not publicly disclosed a start date for construction.

The project’s progress remains linked to Eldorado’s financial position following J&F’s agreement to acquire Paper Excellence’s stake in May 2025 in a transaction valued at approximately R$15 billion. Eldorado reported net debt of R$9.7 billion at the end of 2025, compared with R$966 million in 2024.

Logistics investment continues

Alongside the proposed mill expansion, Eldorado is investing in logistics infrastructure and forestry projects. One key development is an 86.7-kilometre railway branch designed to connect the company’s factory with the Aparecida do Taboado terminal.

In December 2025, the Brazilian Development Bank (BNDES) approved R$1.05 billion in financing for the railway infrastructure.

Brazilian pulp capacity set to increase

Eldorado’s expansion plans come as other producers advance projects that are expected to increase Brazil’s pulp production capacity.

Suzano launched its Ribas do Rio Pardo mill in 2024, with an annual production capacity of 2.55 million tonnes. Meanwhile, Arauco is developing its Sucuriú Project, which is planned to have an annual capacity of 3.5 million tonnes.

The timing of Eldorado’s second production line, together with the progress of competing projects and the company’s financial position, will influence the pace at which additional Brazilian pulp capacity enters the market.

For now, the expansion remains without a publicly announced construction schedule, leaving its contribution to future pulp supply uncertain.