Paper360 - September/October 2016 - 44

INNOVATE SMOOTH Elevate coverage to achieve uniform coating and improved print quality with PEN-COTE® D coating binder. It's nature-based, ready for use and engineered to perform. Get Ingredion Idea Labs™ science-based problem solving. Innovate with CONVENIENCE & PERFORMANCE ingredion.us/papermaking 1-800-443-2746 The INGREDION, INGREDION IDEA LABS and PEN-COTE marks and logo are trademarks of the Ingredion group of companies. All rights reserved. All contents copyright © 2016. 44 Paper360º 823680_Ingredion.indd 1 I believe my hand has been more present in the cultural transformation of Suzano. We decided to make two important changes in our management: the empowerment of people and meritocracy. We believe a lot in potential and performance, making people feel proud and engaged, sharing decisions and command. Suzano moved from a model where owners and shareholders had a strong presence to one where a small group of directors, executives, and the CEO have a more active voice. I believe that we must give authority to those who deal with a specific process on a daily basis, from the forestry to industrial areas, including the commercial department, as no one knows our clients better than the people who are selling and dealing with them every day. Another important change was how the company is organized. We moved from very independent departments to workers who are now mixed and sitting together at our offices and mills. We don't have fixed desktops anymore; if you are from the forestry area but are working on a project with logistics, you can sit with people from that team and share ideas. Is everything perfect? No, and it will never be, but we are humble enough to bring problems to the table and solve them, so the organization is constantly evolving. You have always mentioned the need for capacity discipline for the pulp sector and Suzano's pulp projects are on hold. Do you see any room for the company to resume organic growth in the near future? We don't project any organic growth for the short-term and we are not looking to it at the moment, as it would increase our level of risk in pulp. We opted for debottlenecking projects that add much lower tonnages and create value for the company. My perception is that the model created by Latin American producers puts this creation of value at risk, as all marginal growth is concentrated in China. Of course, with a new mill we trade to Europe and North America as well-but this is because we displace some players that will end up trading to China, not because demand is growing everywhere. Surely a new mill here makes cash, as we can produce at a $150/tonne cash cost, but the question is: Does it create value for a company? You can say that return over invested capital is above the capital cost in the past SEPTEMBER/OCTOBER 2016 29/07/16 12:27 am two years, but the situation is not good if you analyze the past 10 years. Do these past two years represent a long-term strategy? We are talking about billions in investment. A small lignin or fluff project can fail and even though this is not nice, the company can move on. But if you add a new greenfield pulp mill and this project faces a demand problem, it can dangerously harm the business. Brazil is not doing very well at the moment. We hear a lot of bad economic news, the president is facing impeachment, and the population is dealing with the Zika epidemic. Even though Suzano's results have been positive, how does this turbulent scenario affect the company? Suzano has maintained its estimated capex and investments. The economic situation didn't affect any project that was previously approved by the board, and we will continue to move on while the Brazilian and global macroeconomic fundamentals are positive for them. But we are indeed more rigorous in terms of controlling our expenses, as we have to be prepared for the worst scenario. I am not only talking about Brazil, but paying attention to what is happening in the global pulp market. As for paper, we are affected by the local crisis, but the company has been able to increase exports. We have a political and economic crisis in Brazil, but it is important to note that we are also beginning to see a relevant social crisis with a high unemployment rate. My personal concern is how we can contribute to transforming the society, improving the relationship with communities, NGOs and government. Companies need to be more proactive, but not with old-style welfarism; we have to end patrimonialism and corporatism. At Suzano, we are working hard and empowering people, so positive results are coming. The company is not financially stressed anymore and I believe it is just a matter of time before we receive an investment grade. It is very good to work at Suzano, but we recognize that there is a lot to be done. We have problems, but also the strength to solve them. Marina Faleiros is senior news editor for RISI, based is São Paulo, Brazil. www.tappi.org http://www.ingredion.us/papermaking http://www.ingredion.us/papermaking http://www.tappi.org

Table of Contents for the Digital Edition of Paper360 - September/October 2016

Setpoint
Over the Wire
Agenda 2020 Launches ‘Roadmaps’ to Efficiency, Sustainability, and New Product Goals
RBI: Transforming to Meet the Industry’s Research Needs
Paper Schools: Forging the Future
PPI Top 100
RISI’s Latin American CEO of the Year
Automation Upgrade Helps Sappi Gratkorn Perform
Innovative Direct Drive in a Turnkey-rebuilt Project
Klingele Papierwerke Saves Money, ‘Foils’ Stickies
TAPPI Journal Summaries
Life Cycle of the US Paper Industry
TAPPI News
ASPI News
Index of Advertisers
Paper360 - September/October 2016 - bellyband1
Paper360 - September/October 2016 - bellyband2
Paper360 - September/October 2016 - cover1
Paper360 - September/October 2016 - cover2
Paper360 - September/October 2016 - 3
Paper360 - September/October 2016 - 4
Paper360 - September/October 2016 - 5
Paper360 - September/October 2016 - Setpoint
Paper360 - September/October 2016 - 7
Paper360 - September/October 2016 - Over the Wire
Paper360 - September/October 2016 - 9
Paper360 - September/October 2016 - 10
Paper360 - September/October 2016 - 11
Paper360 - September/October 2016 - 12
Paper360 - September/October 2016 - 13
Paper360 - September/October 2016 - Agenda 2020 Launches ‘Roadmaps’ to Efficiency, Sustainability, and New Product Goals
Paper360 - September/October 2016 - 15
Paper360 - September/October 2016 - 16
Paper360 - September/October 2016 - 17
Paper360 - September/October 2016 - 18
Paper360 - September/October 2016 - 19
Paper360 - September/October 2016 - RBI: Transforming to Meet the Industry’s Research Needs
Paper360 - September/October 2016 - 21
Paper360 - September/October 2016 - 22
Paper360 - September/October 2016 - 23
Paper360 - September/October 2016 - Paper Schools: Forging the Future
Paper360 - September/October 2016 - 25
Paper360 - September/October 2016 - 26
Paper360 - September/October 2016 - 27
Paper360 - September/October 2016 - 28
Paper360 - September/October 2016 - PPI Top 100
Paper360 - September/October 2016 - 30
Paper360 - September/October 2016 - 31
Paper360 - September/October 2016 - 32
Paper360 - September/October 2016 - 33
Paper360 - September/October 2016 - 34
Paper360 - September/October 2016 - 35
Paper360 - September/October 2016 - 36
Paper360 - September/October 2016 - 37
Paper360 - September/October 2016 - RISI’s Latin American CEO of the Year
Paper360 - September/October 2016 - 39
Paper360 - September/October 2016 - 40
Paper360 - September/October 2016 - 41
Paper360 - September/October 2016 - 42
Paper360 - September/October 2016 - 43
Paper360 - September/October 2016 - 44
Paper360 - September/October 2016 - 45
Paper360 - September/October 2016 - Automation Upgrade Helps Sappi Gratkorn Perform
Paper360 - September/October 2016 - 47
Paper360 - September/October 2016 - 48
Paper360 - September/October 2016 - 49
Paper360 - September/October 2016 - Innovative Direct Drive in a Turnkey-rebuilt Project
Paper360 - September/October 2016 - 51
Paper360 - September/October 2016 - 52
Paper360 - September/October 2016 - 53
Paper360 - September/October 2016 - Klingele Papierwerke Saves Money, ‘Foils’ Stickies
Paper360 - September/October 2016 - 55
Paper360 - September/October 2016 - 56
Paper360 - September/October 2016 - 57
Paper360 - September/October 2016 - TAPPI Journal Summaries
Paper360 - September/October 2016 - 59
Paper360 - September/October 2016 - 60
Paper360 - September/October 2016 - 61
Paper360 - September/October 2016 - Life Cycle of the US Paper Industry
Paper360 - September/October 2016 - 63
Paper360 - September/October 2016 - 64
Paper360 - September/October 2016 - 65
Paper360 - September/October 2016 - TAPPI News
Paper360 - September/October 2016 - 67
Paper360 - September/October 2016 - ASPI News
Paper360 - September/October 2016 - 69
Paper360 - September/October 2016 - Index of Advertisers
Paper360 - September/October 2016 - cover3
Paper360 - September/October 2016 - cover4
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