Sweden-headed wood fibre supplier Skogsaktiebolaget Eternali (Eternali) has announced that it has signed an agreement to acquire an additional site in the state of Pará in northern Brazil. This acquisition is seen as a strategically important investment to enable a logistics center with both storage and transshipment facilities near the forest plantations with which Eternali has harvesting rights.
According to a statement, the 18.9-hectare (ha) property is a riverside plot located on the Paru River near the town of Almeirim in the state of Pará in northern Brazil.
The location is of strategic importance due to its geographical proximity to both the forest plantations from which Eternali will purchase stumpage – the Coopmar plantations – and the larger international port, Porto de Santana, which Eternali intends to use for its international deliveries.
This land is incredibly important for us to build the hub for transshipment, storage, and drying we need for further transport to our international port. From the moment we began discussions with the Coopmar-cooperative to purchase from their large plantations in the area, we knew how critical it would be to find land around the Paru River for our logistics chain, said Andreas Forssell, CEO of Eternali.
The seller of the land is the company’s COO, Gustavo de Silveira.
In the spring of 2023, we also invested in building a road from the Coopmar plantations to the river area to validate our logistics solutions with potential customers. It is challenging to find good riverside plots in this area, and we are truly grateful that after long discussions with Gustavo, we have had the opportunity to acquire the property for Eternali, so we now can prepare the land, Andreas Forssell said.
On the property, Eternali intends to establish a logistics center with facilities for unloading incoming raw materials from the plantations via trucks, storage, and drying of raw materials, and transshipment of raw materials for transport via the Paru River to Porto de Santana.
The size of the property also allows for the potential establishment of a wood-chipping operation for biomass if needed.
The acquisition of the property is financed through an interest-free promissory note amounting to R$7.2 million (≈ US$1.34 million) which represents a discount compared to the independent valuation of the property commissioned by the company.
The board will propose that the 2024 annual general meeting approve a debt-for-equity swap for the corresponding amount.
