Bracell, a global leader in the production of dissolving pulp, has entered into an agreement to acquire OL Papéis Ltda. The agreement complements Bracell’s growth and diversification strategy by entering the tissue market and further expanding its operations in Brazil. In addition to five brands of toilet paper, OL makes and markets five brands of paper towels and the Fofura baby diaper brand. It was founded in 2007.

OL Papéis’ assets are located in Feira de Santana and São Gonçalo dos Campos in Bahia (BA) and Pombos in Pernambuco (PE) in the northeast region of Brazil. Bracell is a member of the Singapore-based RGE group of companies.

“This acquisition reinforces Bracell’s strategy to expand its business and to continue investing in Brazil. OL Papéis has a significant market share in the Northeast, a region that represents 17% of the volume of toilet paper sold in Brazil in 2021. Its assets, in both manufacturing and brands, will complement Bracell’s operations in Brazil”, said Sérgio Montanha, Bracell’s Head of Tissue Operations.

In early 2022, Bracell announced its commitment to build a tissue mill located next to its pulp mill in Lençóis Paulista, Sao Paulo (SP). Expected to generate more than 2000 jobs during its construction phase and approximately 300 permanent jobs after its completion, the new tissue mill will operate at a total capacity of 240,000 tons per year. It is expected to begin operations in 2024.

Additionally, the company makes more than 30 million diapers per month for key customers in the region.

The acquisition is under the review of the Administrative Council for Economic Defense (CADE) and is expected to complete within 60 to 90 days.