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Suzano to Keep Its Pulp Output Below Capacity on Weaker Dollar

Dayanne Sousa
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Brazil’s Suzano SA, the world’s largest pulp exporter, will maintain production below full capacity through 2026 due to a weakening US dollar eroding revenue, CEO Joao Alberto Abreu announced. The company, which reports earnings in Brazilian reais but conducts most sales in dollars, faces reduced profitability as the greenback’s decline diminishes its foreign revenue when converted. Suzano will operate at roughly 3.5% below capacity, extending a 2025 cutback, to mitigate financial strain from currency fluctuations and volatile global markets. Cost reduction remains a priority, with leadership emphasizing operational efficiency to offset currency-driven revenue losses without sacrificing long-term growth plans. The strategy reflects broader challenges for commodity exporters reliant on dollar-denominated sales amid persistent forex volatility and economic uncertainty.
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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000US Dollar:Brazil’s Suzano SA, one of the world’s top exporters of pulp, plans to keep production below full capacity through 2026 as a weakening US dollar hurts revenue, Chief Executive Officer Joao Alberto Abreu said.The company reports results in Brazilian reais, but most of its sales are done in US dollars and recent weakness for the greenback has held back sales figures. Abreu said the company is focusing on reducing costs and will keep its production roughly 3.5% lower than its total capacity through the end of 2026, after scaling back to those levels last year.

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