Mozambican government authorises installation of paper factory by Portugal’s Portucel

23 December 2009

Maputo, Mozambique, 23 Dec – The Mozambican government Wednesday granted Portuguese pulp and paper company Portucel, 173,000 hectares of land to plant eucalyptus trees, with a view to building a pulp and paper factory in Zambezia provinces, in central Mozambique.

The project, which will be located in the districts of Ile and Namarroi, in Zambezia province, is expected to have production capacity of around a million tonnes of paper per year.

The move by the Portuguese group is part of Portucel’s internationalisation process. Portucel is one of the biggest non-coated fine paper producers in Europe.

The Mozambican council of ministers also authorised Norwegian-owned company Lúrio Green Resources S.A to carry out a Project to plant eucalyptus with estimated investment of US$2.2 billion, in the districts of Mecuburi, Ribáuè and Nampula in northern Mozambique.

The company, which has the right to use the land across an area of 126,000 hectares, will invest US$2 billion in industrial infrastructures and the remaining US$209 million in the forestry area.

Another project belonging to Quifel Energy Moçambique Lda to grow sunflowers and soy for cooking oil will be set up in na area of 10,000 hectares in Gurue, Zambézia province.

The project, estimated to cost US$17.4 million, is expected to provide permanent employment for 148 people and seasonal jobs for around 1,000. (macauhub)