Portuguese pulp and paper company Portucel plans to increase investment in Mozambique from US$2.3 to US$3 billion, the company’s director in Mozambique, Pedro Moura, said.
Moura, in an interview with Reuters, said the increase in investment was the result of “technological developments of equipment producers” and would increase pulp production capacity.
Portucel’s forestry and industrial project for the production of paper pulp and energy in Mozambique is expected to create 7,500 direct jobs and export worth US$1 billion per year.
Portucel owns 80 percent of the Mozambican unit, after selling 20 percent to the International Finance Corporation (IFC) of the World Bank, for US$30.4 million.
By the end of 2017 Portucel plans to plant eucalyptus trees in 40,000 hectares in Manica and Zambezia provinces.
Pulp production is expected to begin in 2023 but Moura admitted there could be a delay of one or two years, which he said was “of no significance.” (macauhub/MZ/PT)