A Brazilian Forestry Giant Spreads Its Branches

With $1 billion in cash, Brazil's Aracruz may bid for rivals

When a eucalyptus falls in the Barra do Riacho forest along Brazil's Atlantic coast, usually the only person to hear the crash is the operator of a huge Caterpillar tree-felling machine. Luiz Kaufmann, CEO of Aracruz Celulose, which owns the 59,000-hectare plantation, likes it that way. He has chopped the Aracruz workforce by more than half in the 1990s while more than doubling output, making it one of the world's most efficient pulp companies.

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