2005 Annual Report
Executive Summary | Internal Processes
Wood supply and logistics
As of 2006, Aracruz will once again become self-sufficient in its main raw material, taking into account in this calculation wood from its own plantations and from participants in the Forestry Partners Program. At the end of 2005, it had 260,800 hectares of own eucalyptus plantations and 139,200 hectares of native forest reserves in the four states in which it has forestry operations – Espírito Santo, Bahia, Rio Grande do Sul and Minas Gerais.
During the year Aracruz increased its own forest plantation base by 2,000 hectares at the Barra do Riacho Unit (ES and BA) and 6,000 hectares at the Guaíba Unit (RS). Another 23,000 hectares at the two units were managed through reform or coppicing programs.
Our forestry management integration process is particularly noteworthy. It encompasses the Barra do Riacho and Guaíba Units planning systems, making it possible to optimize the forest resources of both operations. This integrated approach contributes to guaranteeing current wood supplies to our mills and facilitates appropriate analysis of the forestry viability of new industrial facilities.
Two new platforms for receiving wood shipments were installed at the Guaíba Unit, making it possible to increase the length of harvested logs (from 2.3 meters to 3.0 meters) and permitting longitudinal transportation. The main benefits from this initiative included speedier loading and unloading of logging trucks, improved safety during highway wood hauling operations and improved compliance with legislation.
In the begining of 2006 Aracruz will once again become self-sufficient with regard to wood, its main raw material.
During 2005, the Barra do Riacho Unit gradually reduced the need to purchase wood from the market and, in 2006, will resume being self-sufficient in wood supply. Despite also having attained wood supply selfsufficiency, the Guaíba Unit has a long-term outside supply contract, signed when it was still Riocell, which expires in 2014.