Komatsu Forest Wins Contracts in South America

Komatsu Forest has received major contracts to deliver forestry equipment to companies in Brazil and Uruguay.

Forest machine manufacturer Komatsu Forest has signed a major deal with the new Brazilian pulp mill Eldorado Brasil in the state of Mato Grosso do Sul. In its entirety, the contract is worth about 1.4 billion Swedish kronor (US $200 million).

The agreement covers the delivery of a total of 120 machines, including large numbers of Komatsu PC200F-8 excavators - equipped with Komatsu 370E harvesting heads - and Komatsu 890.3 forwarders. All machines are supplied with five-year full service contracts that include maintenance and parts supply. Delivery of the machines will start this coming spring, ready for use when harvesting begins in the states of Mato Grosso do Sul and São Paulo. The contract also includes training.

Komatsu Forest faced tough competition when bidding for the contract. Central to Eldorado Brazil's choice of Komatsu Forest was the offer of a package solution comprising carriers, harvesting heads and forwarders that are well adapted to Brazilian conditions.

The new Eldorado Brasil pulp and paper mill is the world's largest, and when production is commissioned in the last quarter of 2012, Eldorado Brasil will have an annual output of 1.5 million tons of bleached pulp. The raw material will be sourced exclusively from eucalyptus plantations.

Komatsu Forest has also recently signed important contracts in Uruguay. The Montes del Plata (MDP) pulp mill has purchased Komatsu 941.1 harvesters and Komatsu 890.3 forwarders, together with a full service agreement. MDP is jointly-owned by the Finnish-Swedish company Stora Enso and the Chilean company Arauco. Delivery is to be completed before August 2012.

Uruguay is a relatively small country, covering an area of 17.5 million hectares with 3.5 million inhabitants. Forest plantations account for about 900,000 hectares, with 250,000 hectares of pine and 650,000 hectares of eucalyptus. In 2010, wood production in Uruguay reached 8 million cubic meters. Of this figure, 95% was eucalyptus and five% was pine. The largest consumer is UPM, which uses about 4 million cubic meters per year.

When MDP begins pulp production, Uruguay's annual timber production will increase by 4 million cubic meters. UPM and MDP will then use 65% of Uruguay's total wood production.