Eternali enters into agreement to acquire five eucalyptus plantations

Skogsaktiebolaget Eternali´s (publ) ("Eternali" or the "Company") wholly owned subsidiary Eternali Brasil Ltda has entered into an agreement to acquire five eucalyptus plantations in the state of Pará, Brazil. The acquisition covers 1,300 hectares of land with approximately 400 000 metric tons standing eucalyptus. The eucalyptus plantations have undergone all the criteria to be approved for FSC certification. Harvesting and sale is planned for 2023.

In accordance with Eternali's long-term plan to acquire plantation of fast-growing eucalyptus in Brazil, the Company is now entering its first agreements of acquisition. The eucalyptus plantations are located in the Almeirim region of the state of Pará, within easy reach of several deep-sea ports, which opens for export to the global market.

The plantations have been operated and managed by a joint service organisation (a cooperative) called Coopmar for several years. Eternali intends to use the existing harvesting and transport services of the cooperative and will therefore be able to offer prospective customers a quick and turnkey solution.

The plantations have been approved for FSC certification and the certification process will be finalized by Eternali after the acquisition is completed. In addition to the acquisition of the 1,300 hectares of regrowing plantation land, another 1,500 hectares of land are also acquired, which are set aside in accordance with Brazilian legislation for the protection and conservation of biodiversity.

-          We are proud that Eternali has now acquired its first plantation assets, fully in line with our vision to create value in the green transition. The eucalyptus clone that grows on the plantations is a result of more than 50 years of development, which guarantees a quality wood raw material. We are also satisfied with the well-established logistic chain that are already implemented and enables a direct start of our operations at these plantations. We are now taking a big step towards starting an operating and cash flow-generating business, while at the same time confirming our plan regarding the production and delivery of fast-growing wood raw materials, says Andreas Forssell, CEO of Eternali.

The acquisition is expected to be completed in January 2023, after the ongoing due diligence process is finalized and final surveying of the land is done.

About Coopmar

Coopmar is a cooperative that was founded in 2012 to aggregate small farmers producing eucalyptus timber around the Paru river in the Almeirim area of the state of Pará in northern Brazil. Currently, the cooperative has 164 members that jointly hold approximately 3,500 hectares mature plantations with approximately 1 million m3 of eucalyptus trees ready to harvest.
 

The purpose of the cooperative is to provide services for its members, such as supply of saplings, planting, maintenance, harvesting, technical assistance and certification services.

Coopmar has many years of experience as a service provider and in supplying wood fibre to the pulp and paper industry. The cooperative has machinery and staff to produce approximately 15,000 m3 of trees per month.

The plantations consist of the eucalyptus specie Urograndis and have clones carrying 50 years of research and development made by one of the oldest pulp mills in Brazil. The clones generate 52.2 percent pulp, which is among the highest values in the world. About 80 percent of the trees consist of the clone 3267, with a base density of about 530 kg per m3.