Loan for Afforestation and Woodchip Manufacturing and Sales Project of Nippon Paper Industries’ Brazilian Subsidiary
Supporting Japanese Business for Securing Long-Term Stable Supply of Woodchips
- Region: Latin America and the Caribbean
- Manufacturing and Services
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC; Governor: MAEDA Tadashi) signed on June 30 a loan agreement amounting to up to approximately USD38 million (JBIC portion) with Amapá Florestal e Celulose S.A. (AMCEL), a Brazilian subsidiary of Nippon Paper Industries Co., Ltd. (Nippon Paper Industries). The loan is co-financed with Mizuho Bank, Ltd., bringing the total co-financing amount to USD55 million.
The loan is intended to finance the funds necessary for AMCEL to expand its afforestation and woodchip manufacturing and sales business in the State of Amapá in Brazil, following a loan in August 2012*1
Japan, one of the world’s leading paper producing countries, relies on imports for most of the woodchips to be used to produce paper. However, supply of woodchips is expected to be restricted globally in the future due to multiple reasons including forest preservation, and securing a stable supply of woodchips is becoming increasingly important. AMCEL plans to expand the planted area of eucalyptus from approximately 60,000 ha to approximately 70,000 ha and to increase its annual woodchip sales from about 500,000 BD tons (bone dry weight) to about 700,000 BD tons. Part of the woodchips produced by this project are planned to be imported to Japan for producing paper and as a biomass fuel, and the project is expected to contribute toward the long-term stable securing of woodchips. Also, Nippon Paper Industries plans to supply the woodchips manufactured by AMCEL to a biomass mono-fuel combustion power plant in Tomakomai-shi in Hokkaido, which will contribute toward preserving the global environment.
As Japan’s policy-based financial institution, JBIC will continue to provide financial support to projects that contribute toward securing important resources for Japan by drawing on its various financial facilities and schemes for structuring projects.