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SAO PAULO - Wood-based fibre manufacturer Lenzing has announced that it is to go forward with US$1.3 billion plans to build the world's largest dissolving wood pulp plant in Brazil.

The company, one of the world's leading suppliers of cellulosic fibres, will build the plant in the state of Minas Gerais, near Sao Paulo, in a joint venture with Duratex, the southern hemisphere's largest producer of industrialised wood panels.

The plant will produce up to 500,000 tonnes of wood pulp a year - all of it to Lenzing - and be supplied exclusively by FSC-certified forests, covering an area of more than 44,000 hectares, owned by Duratex.

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