VCP - Votorantim Celulose e Papel is one of the leading companies in the paper and pulp sector in Brazil and one of the largest enterprises of the Votorantim Group, which is notable for being one of Latin America's principal business conglomerates.
The Company's operations are integrated and range from wood production, which is its raw material, to the distribution of product to end consumers. Wood production also is conducted in partnership with farmers, through forestry partner programs.
VCP’s shares are traded on the São Paulo Stock Exchange (BOVESPA) and, since 2001, are traded at Corporate Governance Level 1, one of the special listing segments. Since December 2005, its shares also are part of the exchange’s Business Sustainability Index (ISE), which is recognition of the commitment to economic, social and environmental aspects in day-to-day business activities. Since 2000, VCP’s ADR-3 shares are traded on the New York Stock Exchange, and it was the first Brazilian company to launch ADR-1 shares in the United States, in 1992.
As of December 31, 2006, the Company operated two integrated paper and pulp mills, Jacareí and Luiz Antônio, and two paper mills, Piracicaba and Mogi das Cruzes. The Company also held a 50% stake in Ripasa Celulose e Papel, and a 12.4% ownership stake in Aracruz Celulose. On the same date, the installed capacity was 1.4 million tons/year of pulp and 640,000 tons of coated, uncoated and special papers, excluding stakes in Aracruz and Ripasa.
On February 1, 2007, VCP concluded an asset exchange with International Paper (IP), the largest paper manufacturer in the U.S. It transferred control to the U.S. company of a pulp and paper unit and corresponding forestry base in the region of Luiz Antônio (SP). In exchange, it received a pulp mill under construction and all related rights, as well as planted forests in the neighborhood of Três Lagoas (MS). The Três Lagoas facility is scheduled to be concluded in 2009.
In addition to this, a project for installation of a pulp production unit in the state of Rio Grande do Sul, initially scheduled to start up in 2011, is in the social-environmental licensing phase. The Rio Grande do Sul forestry base was initiated in 2004.
After the exchange of assets with International Paper, VCP's own forests now occupy 416,000 hectares, of which 241,000 hectares consist of areas planted in eucalyptus trees in the states of São Paulo, Mato Grosso do Sul and Rio Grande do Sul. The remainder is occupied by native forests, such as environmental preservation areas, and part is reserved for future forest expansions.
Shares of VCP stock are traded on the São Paulo Stock Exchange (Bovespa) and, since 2001, have been at Level 1 of Corporate Governance, one of the special segments of listing. Its securities have also, since December 2005, been part of the Corporate Sustainability Index, or ISE (Índice de Sustentabilidade Empresarial)—a recognition of the commitment to the environmental, social, and economic aspects in the daily business routines. Since 2000, VCP has traded ADR-3 on the New York Stock Exchange, having been the first private Brazilian company to launch ADR-1 in the United States, in 1992.
Ownership Structure