Alckmin encourages pulp production and Lwarcel announces an investment in the order of R$ 3.5 billion in Lençóis Paulista
Both the Governor and the company highlight the performance of Investe SP in implementing investmentInveste São Paulo
The Governor Geraldo Alckmin signed on June 17, at Palácio dos Bandeirantes, a decree encouraging pulp and paper production, which has brought, immediately, an investment of R$ 3.5 billion from Lwarcel Celulose in Lençóis Paulista. The activity was included in the list of sectors benefited by Article 29 of the Transitional Provisions of the Regulation for the Tax on the Circulation of Goods, Interstate and Intercity Transportation and Communication Services (RICMS).
“São Paulo values performance. And so I congratulate the work of the State Department for Economic Development, of Márcio França, and of Investe São Paulo, chaired by Juan Quirós; The State of São Paulo is an example in Brazil, because in this land, projects became reality. In order to reap results, we need to plant and we are taking the right path. The signed decree stimulates investments such as Lwarcel's and strengthens the state's economy. There is no better news, because investment is what creates jobs, income and wealth for the state", said Governor Geraldo Alckmin during the ceremony.
In addition to the governor, the Secretary for Economic Development, Science, Technology and Innovation, Márcio França, the president of Investe São Paulo, Juan Quirós, and the mayor of Lençóis Paulista, Bel Lorenzetti also attended the event.
The secretary and deputy Governor Márcio França pointed out that, in recent months, more than 7000 jobs were created in São Paulo, resulting from suitable infrastructure conditions, education, research and innovation encouraged by competent governments, such as Geraldo Alckmin's. "Every week I receive good news from Investe São Paulo about the arrival of new investments, job opportunities and income for the people of São Paulo", he said.
At the time, Lwarcel, which is part of the Lwart Group, confirmed plans to expand its production capacity from 250,000 to one million tons of eucalyptus pulp, largely destined to the international market.
The product supplies paper mills aimed at the printing, writing, packaging, specialty papers and tissues markets in Brazil and abroad. The company is estimating an investment of R$ 3.5 billion to expand its pulp mill located in Lençóis Paulista, in São Paulo, which has been operating for nearly 30 years.
The process that led to the implementation of the tax exemption decree relied on the support from Investe São Paulo, which is an investment promotion agency linked to the State Department for Economic Development, Science, Technology and Innovation.
"The pulp and paper production chain is extremely important because it has a large impact on several other production chains. Lwarcel's mill is modern and sustainable, and the increased production shall contribute to São Paulo's foreign trade balance", said the president of Investe SP, Juan Quirós.
The mayor of Lençóis Paulista talked about the importance of the work developed by Investe SP in making this investment feasible. "The countryside has become the engine of the national economy. Our region, in particular, is quite developed, economically speaking. It is a land of enterprising people. However, while the whole country is currently undergoing economic hardships, attracting investments is a challenge. The support provided by Investe SP and the state government's sensitivity were instrumental to materialize Lwarcel's investment", he said.
In addition, Lwarcel's power generation capacity should also increase significantly. In addition to supplying the business units of the Lwart Group, its excess energy, which will change from 6,0MW to 42,3MW, is sold in the market.
"We have much to thank for the commitment and dedication rendered by the Team at Investe São Paulo, who trusted the project, accompanying and guiding us so that we could achieve the tax relief for the investment. With this important decree by the State of São Paulo, we are taking an important step towards making Lwarcel's expansion project economically viable", said Carlos Renato Trecenti, CEO of the Lwart Group.
About the decree
The decree signed on Wednesday benefits the pulp and paper industry by suspending the tax on the import of capital goods for industrial projects destined to the production of pulps and slurries used in the paper making process.
The measure also authorizes full and immediate credit of the tax on the domestic acquisition of goods for the fixed asset. Based on the above rule, established by the Kandir Law, such ICMS restitution could only be made in installments, within 48 months. The decree also allows changing the timing of the tax demand during the pre-operational phase or where there is insufficient amount of ICMS credit to be absorbed by the investor.
Founded in 1986 and standing out for its sustainable growth, Lwarcel Celulose produces 250,000 tons of eucalyptus pulp annually and supplies the printing, writing, packaging, specialty papers and tissues market in Brazil and abroad.
Lwarcel Celulose plans to build a new production line in the current factory, which will represent a production capacity of 1 million tons/year, generating more development for region of Lençóis Paulista.
All wood consumed by Lwarcel comes from planted eucalyptus forests, which rely on continued investments and cutting edge techniques from planting to harvest. The forests planted by Lwarcel are certified by the Forest Stewardship Council® - FSC® and are managed with a view to preserve biodiversity and natural resources.
Lwarcel's growth is based on attitudes and management principles focused on sustainable development. The company is a reference in quality - ISO 9001, environmental performance - ISO 14001 and energy efficiency, and is self-sufficient in electricity from renewable fuels.
To learn more about Lwarcel Celulose's commitment to sustainability, visit www.lwarcel.com.br.
About the Lwart Group
Founded in 1975, the 100% Brazilian industrial group, based in Lençóis Paulista (SP), has its trajectory marked by continuous investment and entrepreneurship.
Companies, Lwart Lubricants, a leader in collecting and re-refining lubricating oil used in Latin America, and Lwarcel Celulose, which produces pulp for the domestic and export market from planted eucalyptus forests, employ approximately 2400 employees and outsourced workers.
The Lwart Group invests in expanding its business based on its values and modern principles of corporate governance. For the company, sustainability consists of doing today, but taking care of the future, and involves preserving the environment, building lasting relationships and contributing to the economic and social development of the communities where it operates.
To learn more about the Lwart Group, please visit: www.lwart.com.br.