State of Mato Grosso do Sul
Suzano's R$22.2 billion mill made Mato Grosso do Sul the world's pulp capital in 2024—7.5 million tonnes/year capacity, exporting 180 MW surplus energy while replacing Cerrado with eucalyptus monoculture.
Mato Grosso do Sul became the world's pulp capital in 2024. Suzano's R$22.2 billion Cerrado Project mill in Ribas do Rio Pardo—the largest single pulp production line globally—started operations in July, adding 2.55 million tonnes annual capacity. The state now hosts 7.5 million tonnes/year of bleached eucalyptus kraft pulp production.
This concentration creates a new industrial geography. At peak construction, the Suzano mill employed 10,000 workers. In operation, 3,000 direct and outsourced employees run industrial, forestry, and logistics operations. The mill exports 180 MW of clean energy to Brazil's grid—self-sufficient with surplus. Announced investments from Arauco and Bracell could add further capacity before 2030.
The state government projects 4.3% average annual GDP growth through 2028, reflecting industrial transformation. "Pulp Valley" positions Mato Grosso do Sul as Brazil's tissue industry destination next. The model: eucalyptus plantations (fast-growing, non-native) feeding integrated mills that process, generate power, and export.
This differs from extraction: processing happens locally, jobs accumulate, infrastructure develops. But monoculture risks persist. Eucalyptus plantations replace native Cerrado vegetation. The state traded one ecological simplification (cattle pasture) for another (industrial forestry). Whether pulp's value-added creates sustainable development or repeats commodity dependency patterns remains to be determined.