Preserving wide swathes of habitat for endangered birds and native plants is not normally associated with eucalyptus plantations for paper pulp production, but that’s exactly what one company is doing in Brazil.
“Having a wide range of animals, plants, and microorganisms within a forest contributes to its resistance and adaptability to change,” said Ronaldo Neves Ribeiro, CIO, CENIBRA Brazil, one of the largest pulp producers in the world, at the International Conference on Forest Products, Paper and Packaging, in Madrid. “When a forest lacks diversity in the types of trees planted, it becomes more vulnerable to damage caused by pests or a changing climate. That’s why we invest so much in preserving biodiversity alongside our plantations.”
The eucalyptus tree significantly contributes to the lives of rural producers. It provides material for construction, fences, and firewood and helps generate income for farmers who supply it as a raw material to industrial production chains. However, as a non-native tree cultivated on a large scale in some regions, eucalyptus has been the subject of much debate, especially by environmental and social groups. Today, eucalyptus is perceived as a renewable raw material for the paper industry, especially in certified production chains.
“Many of the socio-environmental issues on eucalyptus have been addressed thanks to continuous efforts by universities and research centers in Brazil,” said Neves Ribeiro. “Changing negative perception is an important part of our relationship with the community. We have a very balanced approach to our pulp production, ensuring that our cultivated forests are surrounded by natural forests to avoid the loss of biodiversity.”
Protecting people and planet
CENIBRA manages 254,000 hectares of forest land in the heart of Brazil, of which 52% is used for commercial purposes and an astonishing 41% is reserved for natural forests.
Neves Ribeiro is particularly proud of the company’s Mutum project, which seeks to protect native species of birds that are close to extinction. “Preserving biodiversity is a critical element in maintaining long-term business value to our stockholders and local stakeholders,” he said. “Our mission is to generate and distribute wealth in a sustainable manner by processing planted trees, and that’s not possible without biodiversity. That’s why protecting flora and fauna is a key element of our strategic forest stewardship plan.”
Protecting the interests of people is equally important. The company acts as a catalyst of socioeconomic development for the communities within its areas of operation. It provides employment to the local workforce and sources 17% of its wood from local suppliers, all of which meet stringent qualifications regarding quality and regulatory compliance.
Achieving efficiency
CENIBRA produces 1,200,000 tons of bleached eucalyptus pulp per year without the presence of elemental chlorine in the bleaching stages and without the use of additives such as strength aids, talc or optical bleaches. About 91% of the company’s energy matrix is generated by renewable fuels, and the company is fully compliant with the main eco-labels required in all markets around the world. These impressive achievements are only possible with the help of technology and highly trained people.
CENIBRA is the first pulp company to migrate to SAP S/4HANA 100% remotely. “We are dealing with a faster pace of innovation and shorter product life cycles, so we need to increase process automation,” he said during his presentation at the conference. The way CENIBRA is developing intelligent automation in the SAP S/4HANA Cloud solution for internal processes is a good example of how the company has evolved from digital to intelligent until reaching the autonomous stage.
“By 2025, we will increase process automation following a structured plan using process robotization (RPA). Artificial Intelligence (AI) will do operational tasks and offer data analysis to improve decision making, and strategic decisions will be supported by intelligent assistants using data science,” he said, adding that conversational chatbots will facilitate internal and external communications. The implementation of the new S/4HANA tool was an essential step on this journey, and has already reduced accounting time by 24%, invoicing by 77% and payroll processing by 60%, among other positive results.
These impressive results help put CENIBRA at a competitive advantage. Eliminating repetitive tasks gives employees more time to focus on other, more important aspects of the paper pulp business. For example, CENIBRA has one of the world’s most modern nurseries, where cloning techniques are employed in the production of eucalyptus seedlings. The company’s nursery complex incorporates the most innovative and sophisticated facilities currently available in terms of technology.
As a result, the nursery allows CENIBRA to produce high quality seedlings at differentiated costs. Started in 1985, the nursery is part of the company's Forestry Development Program. In addition to its own forests, the nursery also supplies seedlings to small rural producers, who are CENIBRA's partners in the forestry promotion program.
Over the years it has provided an alternative source of work and income in the rural sector. The program creates commercial forests in areas unsuitable for agriculture or livestock. In addition to being a profitable agribusiness, forestry development benefits both the environment and the community, increasing farmers' income and quality of life while preserving native forests.
“We are keen to integrate local communities into our business while making sure our forests reflect the enormous biodiversity of our region,” said Ribeiro. It’s this entrepreneurial and environmentally focused mindset that sets CENIBRA apart from other producers – along with its strategic use of technology to achieve efficiency.
Learn how industrial materials companies are creating a more sustainable future by becoming adaptable and resilient.
First published November 8, 2022 here.
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