The Brazilian Bracell has just completed the acquisition of OL Papéis Ltda. After approval by the Administrative Council for Economic Defense (CADE), the assets located in Feira de Santana and São Gonçalo dos Campos (BA) and in Pombos (PE) become part of the company, reinforcing its expansion strategy in Brazil and marking entry into the tissue market.
Founded in 2007, OL Papéis holds the second position in market share of toilet paper in the Northeast – a region that concentrates around 1/5 of the volume of the total national market. Its operations encompass five brands of toilet paper, another five brands of kitchen paper towels and napkins, in addition to one for diapers. According to Eduardo M. Aron, Tissue General Manager at Bracell, the acquisition of operations, both manufacturing and branding, is a key element in Bracell’s tissue plan in the country. “OL Papéis’ performance, combined with our expertise and technology, will strengthen our vision of developing increasingly better and competitive products for the tissue sector”, he says.Also, according to the executive, the acquisition is in line with Bracell’s ambition to expand business on this front.
In early 2022, Bracell had also announced investments in a tissue factory next to the pulp mill it owns in Lençóis Paulista (SP).
With an investment of 2.5 billion reais, the operation will be considered the largest tissue paper operation in Latin America. The expectation is to generate more than 2,000 jobs during the construction phase and approximately 550 permanent jobs for the operation of the plant, which will have a total production capacity of 240,000 tons per year and is expected to start operating in the second quarter of 2024.