Thursday, February 9, 2017

Navigator will invest in spite of being concerned with the policy for eucalyptus – Jornal de Negócios – Portugal

The Navigator Company, the name adopted last year by the Portucel has decided to proceed with the investment of 121 million euros in its factory in Cacia and also intends to achieve another boost in its drive from Figueira da Foz and is budgeted at 85 million euros.

the presentation of The results of 2016, this Thursday, the company says, “it is estimated to have gathered the whole range of necessary conditions for the realization of the investment in Cacia in the area of “tissue” (used in toilet paper, paper tissues or kitchen paper).

The project involves the construction of a line of production of tissue and transformation into the final product, with a nominal capacity of 70 thousand tons per year.

“The decision to move forward with the construction of the new line was subject to the achievement of a series of factors, namely the provision of a package of fiscal and financial incentives, that, at this time, already finalized,” said the Navigator.

The paper group adds that “upon the signature of the funding contracts, the Board of Directors decided to move forward with the development of this project”, pointing now that the estimated time for the completion of new lines of production and transformation of tissue that have been announced also in 2015 is the second half of 2018, and provided that the disbursements on this investment are apportioned between 2017 (about 40%) and 2018.

The group had also announced last year the intention to develop a project in the industrial town of Figueira da Foz, estimating the value of this value investment in about 85 million euros.

The Navigator adds that it presented an application to a set of financial and tax incentives, which is still pending for consideration by the AICEP, and it is estimated to get an ok by the end of the first quarter of this year.

This project, explains, “aims at an improvement in production efficiency and a capacity increase of 70 thousand tons, for a total production of 650 thousand tons of bleached eucalyptus pulp (BEKP per year”, and it is envisaged that the completion of the work during the first half of 2018.

The group stresses, however, that “we see with concern the Government’s intention in approving, in the framework of the reform of the legislation that regulates the forestry sector, a law that prohibits the planting of new areas of eucalyptus, only allowing plantations to new areas by trade with the plantations already existing in marginal areas and low-income”.

In his view, this proposal, “which lacks any technical foundation and the environmental, does not take into consideration the importance of eucalyptus to the national economy and will cause further difficulties in a sector where there is already an imbalance between supply and demand, and that currently already imports about 200 million euros of wood per year”.

The Navigator says, “has worked in a constructive way, either directly, or through their association in the sector, in order to give the input necessary to try to minimize the negative aspects of this legislation”.

In October 2016, in the presentation of the results of the third quarter, the company claimed to still have “questions to clarify” regarding the conditions of the market as well as the possible restrictions at the level of access to the wood.

under the agreement to be that the HP came with the Greens for a solution developed by the government, took the written commitment of halting “the expansion of the area of the eucalyptus, in particular through the repeal of the law that liberalizes the planting of eucalyptus trees, creating a new legal regime”.


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