Linklaters advises Duratex in US$1bn joint venture with Lenzing to build pulp mill in Brazil

Linklaters has advised Brazilian wood panel manufacturer Duratex in its joint venture with Austrian cellulose fiber producer Lenzing to build a US$1 billion dissolving wood pulp (DWP) plant in Brazil.

The 450,000-ton DWP plant will be located in the Brazilian state of Minas Gerais and is expected to become the largest single line DWP plant in the world.

Lenzing will hold 51 percent of the joint venture and will operate the mill, while Duratex’s share will be 49 percent. The final investment decision to build the DWP plant is subject to the outcome of a basic engineering study and the approval by the respective supervisory boards.

The Linklaters team was led by partner Alberto Luzárraga and senior associate Gabriel Silva who were supported by counsel Andrew Compton, managing associate Timothy Leschke, and associates Josh Feit and Isabella Correa.