Company: SUZ
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001628280-25-020368
Chunk: 85

Company: Suzano S.A.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 4
Chunk 85
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 producers who sell the pulp to non-integrated or semi-integrated paper producers. In 2023, approximately 40% of global pulp virgin fiber consumption was “market pulp” (Hawkins Wright - The Outlook for Market Pulp (August 2024)); that is, pulp sold by pulp mills and bought by paper mills. We produce pulp for our own paper production (integrated pulp) and to sell to other papermakers (market pulp). We produce only hardwood pulp from our renewable forests of planted eucalyptus trees. Eucalyptus pulp is widely accepted among producers of printing and writing paper, specialty papers and tissue papers worldwide because of its properties and cash production cost, and it has represented an increasing percentage of the world production of hardwood pulp. Eucalyptus trees in Brazil have a shorter growth cycle than other hardwood trees (approximately seven years in Brazil) and higher yield per planted hectare.

Brazil’s competitive advantage is driven by the fact that Brazil has the fastest tree growth rates in the world and the highest productivity rate. Thus, we believe that we are among Brazilian pulp producers that have the lowest production cost in the global market.

The key drivers of global virgin pulp demand growth are packaging, tissue and special paper. According to Hawkins Wright these grades presented an average annual growth rate (AAGR) from 2013 to 2023 of 1.2%, 2.6% and 2.0%, respectively.

Paper consumption in China has been the main driver of demand growth over the past years. According to PPPC, global demand for pulp (including softwood pulp and hardwood pulp) and for tissue is expected to continue increasing in the following years.

Source: Pulp and Paper Products Council - PPPC S& D (December 2024).

Table of Co ntents

Source: Pulp and Paper Products Council - PPPC S& D (December 2024).

Source: Pulp and Paper Products Council - PPPC (December 2024).

Table of Co ntents

According to Hawkins Wright, in 2024, we were among the top ten market pulp producers in terms of capacity, with a combined 15% market share of chemical market pulp capacity.

Source: Hawkins Wright, December 2024.

Source: Pulp and Paper Products Council - PPPC S& D (December 2024).

Our Company

With 100 years of experience, we operate mainly in the pulp (paper grade and fluff) and paper (paperboard, printing