Eternali acquires land in Brazil to establish logistics center

Eternali has signed an agreement to acquire land in the state of Pará in northern Brazil. This acquisition is seen as a strategically important investment to enable a logistics center with both storage and transshipment facilities near the forest plantations with which Eternali has harvesting rights. 

The 18.9-hectare property is a riverside plot located on the Paru River near the town of Almeirim in the state of Pará in northern Brazil. The location is of strategic importance due to its geographical proximity to both the forest plantations from which Eternali will purchase stumpage (the “Coopmar-plantations”) and the larger international port, Porto de Santana, which Eternali intends to use for its international deliveries. The seller of the land is the company’s COO, Gustavo de Silveira. 

“This land is incredibly important for us to build the hub for transshipment, storage, and drying we need for further transport to our international port. From the moment we began discussions with the Coopmar-cooperative to purchase from their large plantations in the area, we knew how critical it would be to find land around the Paru River for our logistics chain,” says Andreas Forssell, CEO of Eternali. “In the spring of 2023, we also invested in building a road from the Coopmar-plantations to the river area to validate our logistics solutions with potential customers. It is challenging to find good riverside plots in this area, and we are truly grateful that after long discussions with Gustavo, we have had the opportunity to acquire the property for Eternali, so we now can prepare the land,” Andreas continues. 

On the property, Eternali intends to establish a logistics center with facilities for unloading incoming raw materials from the plantations via trucks, storage and drying of raw materials, and transshipment of raw materials for transport via the Paru River to Porto de Santana. The size of the property also allows for the potential establishment of a wood chipping operation for biomass if needed. The acquisition of the property is financed through an interest-free promissory note amounting to 7.2 million Reais, which represents a discount compared to the independent valuation of the property commissioned by the company. The board will propose that the 2024 annual general meeting approves a debt-for-equity swap for the corresponding amount.