Category A project

Project "Amadeus" Dissolving Wood Pulp plant

Country: Brazil
Borrower: LD Celulose S.A.
Sector: Industries & services
Published for 30 days on: 20 Feb 2020
Planned date for decision by Board of Directors: 21 Apr 2020

Project summary

“Project Amadeus” is a greenfield Dissolving Wood Pulp (DWP) plant with the infrastructure needed to produce 500,000 tonnes of DWP per year.
The required infrastructure includes associated facilities, such as a power plant, a transmission line, water intake and effluent outflow pipelines as well as an ancillary eucalyptus plantation that forms the plant’s input resource base. The construction phase is planned to start in early April 2020 and last for 28 months.

Project Amadeus is located near the towns of Uberlandia and Araguari, Brazil. The DWP will be exported and used to manufacture textiles and non-woven fabrics. The Project is classified as “Category A” according to NIB’s Sustainability Policy and Guidelines.

Examples of key risks and impacts on the environment, local communities and occupational health and safety during the construction phase of the Project:
(i) influx of temporary workers;
(ii) increase in traffic on local roads generated by construction vehicles;
(iii) atmospheric and dust emissions;
(iv) generation of noise;
(v) generation of wastewater and solid wastes;
(viii) generation/handling of hazardous waste; and
(ix) potential deficit in the capacity of local municipalities to absorb and manage the additional pressure on social and physical infrastructure.

During the operation phase, key negative risks and impacts relate to:
(i) potential impacts to modified and/or natural habitat for the establishment of ancillary eucalyptus plantations;
(ii) generation of atmospheric emissions, wastewater discharges and solid waste;
(iii) increase in traffic on local roads generated by vehicles transporting timber, supplies and products;
(iv) expectations from local communities in terms of employment generation and from municipalities for support by the company; and
(v) the potential need to upgrade urban planning to guide the induction of urban sprawl associated with the new plant and municipal capacity to manage a rapidly changing socioeconomic environment.

The sponsors have carried out an Environmental and Social Impact Assessment (“ESIA”), and the Project has secured a preliminary environmental license, issued by the state of Minas Gerais environmental regulator SEMAD ("Secretaria de Meio Ambiente e Desenvolvimento Sustentavel").

NIB will carry out an environmental and social (E&S) due diligence of the project. As part of the E&S due diligence, NIB will visit the site and further assess the Project’s key features. The Sponsors will be required to ensure the project meets the requirements of NIB’s Sustainability Policy and Guidelines and address possible gaps in the form of an action plan.

NIB welcomes comments on the project in question.

Project sponsor contact information

Duratex S.A.:
Marina Garbi Amaral Mello
Avenida Paulista, 1938, Sao Paulo, Sao Paulo, Brazil

Lenzing AG:
Thomas Fritz
Lenzing Aktiengesellschaft
4860 Lenzing, Austria
Werkstraße 2

NIB contact information
Please write "Category A project" in the subject field.
Nordic Investment Bank
Environmental Unit
P.O. Box 249
FI-00171 Helsinki

This document was prepared and disclosed at an early stage of NIB's review of the project, before consideration by NIB's Board of Directors. Details of the project may change following disclosure.
The Environmental Impact Assessments (EIA) and EIA summaries are produced by the project sponsors, and NIB makes them available without any comment or implied endorsement. Any views expressed or statements made in the EIA or the EIA Summary do not necessarily reflect the views or opinions of NIB.