Suzano to ramp up investments in nation

Suzano, the world's largest producer of market pulp, vows to continuously step up its presence in China, an "essential growth engine" that is expected to provide massive opportunities for the Brazilian company, said a senior executive.

"China's transformation from high-speed to high-quality growth creates unprecedented opportunities for multinational corporations like Suzano," said Pablo Machado, Suzano Asia president.

The company plans to substantially increase its investments across China, capitalizing on the nation's "massive consumer upgrade wave" to support the nation's aggressive transition toward a greener economy.

The planned investment surge in China, including research and development, logistics infrastructure and local value chains, will help provide more sophisticated, higher-quality products to Chinese consumers in packaging, hygiene, textiles, cosmetics, and other sectors, he said.

According to Machado, China, by far the country that invests the most in the green economy and energy transition, is also becoming stronger in international finance with a sophisticated financial system.

The investment push also underscores the increasingly robust trade and diplomatic relations between Brazil and China, said industry experts.

As highly complementary economies, the partnership between the two countries has set a positive framework for further bilateral business expansion in the forestry and bio-based materials sector, said Lin Boqiang, head of the China Institute for Studies in Energy Policy at Xiamen University.

The company has been stepping up investments to increase the participation of Chinese financial institutions and capital markets in its fundraising portfolio.

Suzano issued its second Panda Bond, or renminbi-denominated debt sold in China, in October, raising 1.4 billion yuan ($165 million) in the Chinese interbank bond market.

This follows a 1.2 billion yuan green Panda Bond issued last November, the first such bond issued by a nonfinancial corporation in South America.

Exploring and utilizing the Chinese capital market is a core part of Suzano's long-term financial strategy, providing the company with a diversified and competitive source of funding while supporting the solidification of the vital economic bridge between Brazil and China, said Machado.

"This is another concrete action toward our commitment to the Chinese market, and another contributing factor to our growing presence here," he said.

Machado praised the pace of innovation within the Chinese market, as well as the speed and dynamism of China's economic trajectory, which reinforces the company's long-term conviction that "a deeper presence in this country is paramount to our future success".

"By aligning its business model with China's long-term development strategy and its demand for sustainable solutions, Suzano is clearly positioned to benefit significantly from the ongoing consumption upgrade, confirming its long-term bullish stance on the Asian powerhouse," he said.