Irani Approves R$514 Million Investment to Expand and Modernize Minas Gerais Paper Mill

Irani Papel e Embalagem has approved the execution of Project Gaia XII, a modernization and expansion initiative at its paper mill in Santa Luzia, Minas Gerais, involving total investments of R$514 million.

The project includes the refurbishment of the MP#7 paper machine, installation of a new power boiler, and the complete revitalization of the paper mill. According to the company, the investment is intended to increase production capacity by approximately 36,000 tons per year, representing a 60% expansion compared with the unit’s current output. The project is also expected to improve operational efficiency through reductions in steam and energy costs.

A key component of Gaia XII is the replacement of the existing natural gas boiler with a new biomass boiler. The company said the change is aligned with its decarbonization strategy and has the potential to reduce process-related carbon dioxide equivalent emissions by approximately 87.6%, representing a reduction of 11,867 tCO2e per year. The transition is also expected to contribute to lower energy costs.

Construction and installation work are scheduled to be completed by the fourth quarter of 2028.

Irani said Gaia XII marks the conclusion of its Gaia Platform, a cycle focused on optimizing and modernizing plants and processes. The company plans to move into a new phase known as the Neos Platform.

Under the Neos Platform, Irani aims to double its market share in the corrugated cardboard segment by 2034, increasing it from approximately 4% to 8%. The company is evaluating several projects that could be implemented by that date, including a new corrugated cardboard plant with a conversion capacity of 120,000 tons per year in southeastern São Paulo state or southern Minas Gerais, a second corrugated cardboard facility of similar capacity at a location yet to be determined, and a new recycled paper machine with annual capacity of 132,000 tons dedicated to producing rigid papers for corrugated cardboard conversion.