Eternali's business begins with the opportunity to supply wood raw materials from Brazil to the international market. Customers are expected to be paper producers, wood product manufacturers, bioenergy companies and other wood fiber and cellulose users.
Our current COO and CEO of Eternali Brazil, Gustavo Silveira, has many years of experience in the production and delivery of wood raw materials and wood products on the international market. He identifies several possible assets and build up an asset base that can be produced and delivered to customers globally in general and to Europe in particular. A lot of work goes into establishing a database of these assets.
The customers are there, but capital is required to build an asset base. At a forestry fair in London, the first contacts are made between Gustavo and representatives of a Swedish forest fund with assets in Brazil and the Baltics. Together they shape the structure of a company (Eternali) that will include the Swedish forest fund's assets in combination with expansion through plantations with fast-growing eucalyptus.
The forestry company Eternali is formed in the beginning of 2020 and the work to acquire the Swedish fund's assets begins. Several different approaches are being investigated, but nothing works in practice. However, the business opportunities remain, and Eternal’s strategy are altered to focus only on fast-growing eucalyptus plantations. At the same time, the entire operation will concentrate on sustainability and ESG, where Eternali will be a serious performer in the green transition.
As a step in this strategic shift, a new CEO, Andreas Forssell, with a background in raw materials from international assets, is hired in the fall of 2021. With this recruitment and with the new focus, the fund's importance as part of the development of Eternali has been phased out. The company's board and management are further adapted for Eternali as the green wood raw material company.
2022 begins with Eternali entering a letter of intent with the two leading paper producers in Portugal. The letter of intent is to work to enter into an agreement for the supply of 2.5 million m3 of wood raw material over four years. To enable conditions for Eternali to start production and deliveries to customers, the organisation continues to be built up, both in Brazil and in Sweden. In Brazil, forest engineers, project managers are hired, and Gustavo takes on the role as Chief Operational Officer. In Sweden, the staff is being expanded with the management team functions of Chief Financial Officer Tim Carlsson and Chief Sustainability Officer Pernilla Enkler.
During the spring and summer of 2022, a final attempt is made to acquire one of the Swedish fund's forest assets. After a letter of intent is written between the parties, the management of Eternali carries out an assessment, which results in Eternali still rejecting the Swedish fund's assets. The board finally decides to end the process, this time for good. Eternali is and remains the green team with fast-growing wood raw materials from Brazil.
In October 2022, Eternali's application for participation in the UN Global Compact is approved. As a participant, Eternali undertakes to submit a written report (Communication on Progress) to the Global Compact every year, in which Eternali explains what measures have been taken and what progress has been made. Eternali has high sustainability ambitions and must be part of the sustainable transition. Extensive work has been carried out in the work of developing a focus and strategy.
In late autumn 2022, Eternali's enters an agreement to acquire five eucalyptus plantations as part of servicing long-term supply contracts to customers. The eucalyptus plantation is located in the Almeirim region of the state of Pará, within easy reach of several deep-sea ports, opening up exports to the global market. The plantations have been approved for FSC certification. In addition to the acquisition of the planted land of 1,300 hectares, 1,500 hectares of land set aside in accordance with Brazilian legislation to protect and conserve biological diversity is also acquired. With the acquisition, Eternali is now laying the foundation for starting an operational and cash flow-generating business, while at the same time consolidating the plan regarding the production and delivery of fast-growing wood raw materials.