Suzano Ordered to Halt Pulp Project on Enviornment Permit

Suzano Papel & Celulose SA (SUZB5), Brazil’s second-largest pulp producer, was ordered to suspend the construction of a $2.9 billion plant by a federal court because of insufficient environmental permits.

The court ruled that a permit granted by the northeastern state of Maranhao only authorized Suzano to use eucalyptus to make coal and doesn’t replace the need for a license from the federal environmental agency, known as Ibama, according to a statement on the website of the federal prosecutors office.

Suzano, led by Chief Executive Officer Antonio Maciel Neto, plans to produce 1.5 million metric tons of pulp a year in the plant, which is slated to start production in 2013, according to the Salvador, Brazil-based company’s website. Pulp is the raw material used to make paper.

The environmental license had been granted for an area of 42,000 hectares that covers the northeastern states of Maranhao and Piaui.

Suzano (SUZB5) rose 0.5 percent to close at 8.18 reais at 5:13 p.m. in Sao Paulo. Earlier it advanced as much as 1.8 percent.

The company’s press office didn’t immediately return calls and an e-mail from Bloomberg News seeking comment.

To contact the reporters on this story: Lucia Kassai in Sao Paulo at; Peter Millard in Rio de Janeiro at

To contact the editor responsible for this story: Dale Crofts at

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