Sudati MDF

pending

The proposed investment consists of an A loan of up US$30 million and a B loan of up to US$30 million to Indústria de Compensados Sudati Ltda. (“Sudati” or the “Company”), a Brazilian family-owned company engaged in the production of plywood and Medium Density Fiberboard (MDF). Sudati is the largest producer and exporter of plywood in Brazil with a 14% market share in plywood exports. Headquartered in Palmas, Sudati has five manufacturing units, 4 of which are in the state of Paraná (Palmas, Ibaiti, Telêmaco Borba and Ventania – plywood production) and one in the state of Santa Catarina (Otacílio Costa – MDF production).The proposed IFC investment will support the installation of a 2nd MDF production line (the “Project”). This proposed expansion will be located within the existing Sudati’s 29.6 ha industrial lot in Otacilio Costa while additional equipment will be added to an existing energy substation. This 2nd production line will triple current MDF production capacity and will operate independently of the existing line, which is operational since 2009. However, upon the commissioning of the 2nd production line in March 2025, they will share associated facilities, such as water treatment plant, energy substation and transmission line, multicyclone systems for air emissions control, storage yard, and worker facilities. The existing wastewater treatment (WWT) plant used by the 1st production line will not be shared as the 2nd production line will operate in a closed circuit and will not require wastewater treatment. This 2nd line will have a new biomass 60.75 MW power plant. The technical specifications of the 2nd MDF production line will meet United States and European requirements.