Suzano Pulp and Paper is launching today the Forestry Partnership Program (Programa de Parceria Florestal – PPF) in the state of Piauí. The objective of the program is to enable rural landowners to participate in the pulp production chain through eucalyptus plantations by providing them with special financing lines. The Company thus hopes to create new opportunities for the region, strengthening its sustainable management model that takes into account the development of business and the communities where it operates.

One of the key goals is to develop forestry activities through incentives and initiatives to encourage the planting of eucalyptus trees on the property of local independent producers. The Program will primarily focus on the participation of small- and medium-size producers, making them responsible for part of the supply of Suzano’s industrial units, thus contributing with income generation and creation of direct and indirect jobs.

The Forestry Partnership Program is part of the investments in Suzano’s new growth cycle, which will allow the Company to achieve, within the next decade, an additional production capacity of 4.3 million tons of pulp per year, reaching a maximum production capacity of 7.2 million tons. To reach that capacity, the company has announced two new pulp mills in the states of Maranhão and Piauí, which should start-up in 2013 and 2014 respectively, and a third location yet to be defined, in addition to the project to increase production at the Mucuri Unit located in the south of the state of Bahia.

By including the rural landowners in its supply chain as wood suppliers, Suzano is stimulating forestry activities, enabling the most diverse types of alternative farming and assisting with the conservation of legal reserves and permanent preservation areas, contributing towards environmental balance and sustainable wood production.

Currently Suzano has partnered with more than 1000 landowners located in the states of São Paulo, Espírito Santo and Bahia. The objective of the Forestry Partnership Program is to make participants within the program account for approximately 30% of the total wood supply. Therefore, we estimate that 200 contracts will be signed annually, throughout Brazil, covering all types of producers.

By 2015, Suzano will invest approximately R$ 8 billion in the implementation of these new mills in Maranhão and Piauí and in the creation of its forestry base in these states (R$ 4 billion in each state), which will accelerate the growth and development in the regions within the scope of these developments.

So that these investments are made in a sustainable manner, Suzano has carried out active work with communities, through several communication channels to answer questions and receive suggestions, in addition to promoting meetings with organizations, community leaders and government representatives to discuss local development. Suzano has also had meetings with community associations to discuss specific programs and actions and, thus, consolidate the relationship with people that live in the community, as well as organizations in the municipalities.

Suzano and partners are not the only ones involved in the Program; financing institutions such as Banco do Brasil and Banco do Nordeste are also participating. The process to include farmers in Suzano’s Forestry Partnership Program is initiated whenever any candidate shows interest in developing forestry activities, with a major social, economic and environmental benefit, along with their traditional agricultural activities. Suzano will then send one of its technicians to the farmer’s property for the first technical visit, who will verify the potential and suitability of the area for forestry production.

The Suzano Forestry Partnership Program is divided into two categories —Renda Verde and Invest Verde (Green Income and Green Invest)—according to the social, environmental and land profile of the participants and the region of the country. The Program establishes the maximum area of property that can be allocated for eucalyptus plantations for each category and also the percentage of wood that Suzano agrees to purchase .

Renda Verde (Green Income)

This type of program in Piauí is intended for producers and landowners whose plot is up to 680 ha; maximum; 340 ha can be planted during the contract period.

Suzano guarantees to purchase at least 95% of the wood produced by Green Income partners. Suzano will assist farmers by providing forestry, agricultural and environmental incentive packages, support during the certification process and seedlings for planting and replanting.

Invest Verde (Invest Green)

This type will serve farmers and rural landowners as well as investors in Piauí, with 340 to 2,800 ha of land; up to 50% of the property may be allocated to forestry activities.

In this category, Suzano guarantees it will purchase at least 50% of the wood produced through a specific contract, as well as provide assistance, forestry incentive packages and seedling supply for planting and replanting.

About Suzano Pulp and Paper

As a forestry base company and one of the leading vertically integrated producers of eucalyptus pulp and paper in Latin America, Suzano Pulp and Paper is part of the Suzano Group. The Group has been investing in the pulp and paper sector for the past 86 years, with global presence in approximately 80 countries. The company has adopted a management model that takes into account the three main dimensions of sustainability: business, society and environment. Suzano currently has five mills: Suzano, Rio Verde and Embu, in the interior of the state of São Paulo, Mucuri in the state of Bahia and 50% stake in Conpacel in São Paulo, also located in the state of São Paulo.

www.suzano.com.br

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