TANAC invests US$ 60 million in a wood pellet mill in Rio Grande do Sul state, Brazil

TANAC invests US$ 60 million in a wood pellet mill in Rio Grande do Sul state, Brazil

01 of October of 2014

TANAC  S.A., Brazil, will invest approximately  US$ 60 million in a factory of wood pellets, in the industrial district of Rio Grande city, Rio Grande do Sul state,  Brazil.

The memorandum of understanding was signed today (Sept  30th  2014) in the Investor Room at Department of Development and Investment Promotion (SDPI), the incumbent Secretary, Mauro Knijnik, the Deputy Secretary of Finance, André Paiva, and the CEO of company, Otavio  Decusati.
"It's an important project, impacting the state's production chain and the southern half of our State, which receives another major investment," said Knijnik, also emphasizing the tradition of TANAC  in the state.
According Decusati, 90% of the investment will contract  Rio Grande do Sul state suppliers and the remaining 10% related to the pre-grinding, grinding, pelletizing and cooling from German-made equipment , which shall also be internalized by the Port of Rio Grande. "With this plant, it puts the Rio Grande do Sul state in the supplying  route of biomass," said the executive.
The new facility will begin operations in February 2016, with production of 350,000 tons / year of pellets, absorbing wood produced in about 4000 ha / year. 40 direct jobs and another 300 indirect job will be generated. During construction, about 500 workers will work in the facility. The installation license has been granted by FEPAM, the environmental protection agency of the state.
The design of wood pellets from TANAC is the largest in Latin America and will be the first installed in Rio Grande do Sul, which will  open the way for the state to become a major wood pellet  exporter to Europe, where demand is projected to increase to approx. 50 million tons / year by year  2020, considering the program of replacing fossil fuels by biomass in the European Union.

About Tanac
TANAC  commenced operations in 1948 in Montenegro, RS, Brazil , with the production of vegetable tannin extracts from the bark of the black wattle (Acacia mearnsii) , serving tanneries in the region. Started exporting in 1960 and nowadays exports to over 70 countries worldwide . In 1995, to add value to the wood, installed a unit of wood chip production in the industrial district of Rio Grande, RS, Brazil, with a capacity of 700,000 tons / year, export oriented. The company employs 870 workers in two units.
Currently, Rio Grande do Sul state has approximately 150 000 ha planted with Acacia mearnsii, encompassing about 40 000 farmers, predominantly small.

Foto: Leonardo Radaelli/Especial SDPI