Performance recognition

Fibria received a prize at the “Latin Finance Deals of the Year” Awards 2010, presented by Latin Finance magazine, in recognition of its successful international capital market operation to exchange securities issued in 2009 for new securities issued in 2010, which attracted a strong investor response.

Positive outlook

Moody’s and Fitch risk rating agencies announced at the end of December their upgrading of Fibria’s assessment to positive, due to the anticipated lowering of the company’s leverage, indicating the number of years that it would take for Fibria’s operations to settle its debts in full. The assessment was carried out following the announcement, in December 2010, of the sale of the company’s 50% stake in Consórcio Paulista de Papel e Celulose (CONPACEL) and 100% stake in KSR Distribuidora to Suzano Papel e Celulose, for R$ 1.5 billion. The ratings, of Ba1 from Moody’s and BB from Fitch and Standard & Poor´s, all with a positive outlook, reflect Fibria’s position as the world’s largest producer of bleached eucalyptus pulp, its competitive production cost – one of the lowest in the sector – and the fact that its revenues are mostly tied into long-term contracts, in addition to the positive assessment of the company’s two main shareholders (the Brazilian Development Bank and the Votorantim Group).

Professional recognition

Ergílio Cláudio-da-Silva Jr., PhD, Fibria’s Technology general manager, has been awarded the title of TAPPI Fellow. Ergílio is a member of TAPPI – the world’s leading association for the pulp, paper, packaging and manufacturing industries – and is being recognized for his participatory and technical contributions to the industry and to the association, including more than 30 published technical works and the registration of four patents. This honorary title is a rare professional distinction in the sector and will be presented during PaperCon 2011, an event that will take place in Kentucky (USA), in May.

Portocel milestone

Portocel, located in Barra do Riacho, Aracruz (Espírito Santo state) and jointly owned by Fibria (51%) and Cenibra, is the only port in Brazil specialized in pulp shipments. At the end of 2010, the terminal passed the milestone of 60 million tons of pulp shipped out since 1978, when it began its operational activities. Last year, alone, Portocel handled the loading of 5,630,282 tons of pulp onto a total of 281 vessels.

Support for research

On January 17^th, the Brazilian Forestry Science and Research Institute (IPEF) inaugurated the new installations of its Seeds and Seedlings division, located in an area of 40 hectares in Piracicaba (São Paulo state), that was ceded by Fibria. The area contains administrative and sales offices, cold storage and a lab for seed and seedling analysis and technology, as well as a nursery with the capacity to produce 600,000 seedlings a month. The inauguration also saw the launching of the the Forest Stewards Training Program - 2011 Cycle, which will provide professional training to 20 recently graduated forestry engineers, under Fibria sponsorship.

Production record

Fibria’s Aracruz Industrial Unit, in the state of Espírito Santo, set a new pulp production record in 2010. The three fiberlines (A, B and C) turned out 2.25 million tons of pulp, thereby exceeding the 2009 production level by 49,600 tons. Other outstanding results were also achieved during the year, such as raising the pulp quality index to 97.5%, from 96.6% in 2009, and an improvement in the Environmental Performance Index, from 84% to 87.5%.

Cultural preservation

On January 20^th, a documentary portraying the culture of the community of Helvécia was shown to 100 residents of that Nova Viçosa district (Bahia state). The video is just one of the outcomes of Fibria’s engagement with the community and reveals details of the local cultural heritage, including scenes from the theater, singing and dance workshops held for the local residents during the process of preparing the play Auto de São Benedito.

Training forest monitors

On January 4^th, 60 residents of 33 communities in the vicinity of Fibria plantations in Posto da Mata (Nova Viçosa) and Caravelas, in southern Bahia, were presented with certificates marking completion of the forest monitor training course, provided by Fibria in partnership with the Center for Technical Development (CEDTEC). The new monitors have been hired by Fibria to identify and monitor the local fauna and flora and fight fires, pests and environmental interference in the company’s plantations.

Protected species

Three crowned eagles (Harpyhaliaetus coronatus), members of an endangered species, inhabit Fibria’s forests in Três Lagoas (Mato Grosso do Sul state). These magnificent birds were spotted amongst the eucalyptus during recent monitoring of the fauna at Fazenda Barra do Moeda. Due to their size, for feeding and breeding, they require an extensive area in an open or semi-forested habitat, which makes them easy prey for hunters.

Did you know...

...that in 2010 Fibria began the environmental restoration of 3,000 hectares of the Atlantic Forest biome? The areas, located within the states of Espírito Santo, Bahia, Minas Gerais, São Paulo and Rio de Janeiro, are part of roughly 400,000 hectares of native reserve areas that the company has set aside for conservation. In 2011, the target is to initiate the restoration of another 4,000 hectares. The total area that is to be restored over the next few years is expected to amount to 20,000 hectares.