ARACRUZ

Financial, strategic and operational restructuring (1993-1999)

Aracruz CeluloseS.A. is the world's leading producer of bleached eucalyptus maket pulp, and the first Brazilian copany to be traded with ADRs Level III at the NYSE

Luiz Kaufmann assumed the presidency of Aracruz in May 1993, when the company was highly indebted and cellulose prices had dropped to their lowest in history. At the time, the company had a debt of around US$ 1.1 billion, highly onerous, and a US$ 360 million/year turnover.

The mission defined by Aracruz shareholders included:

  • Change Aracruz's "state-owned" profile to that of a modern company, aggressively increasing its ROI;
  • Equate the balance sheet structure;
  • Prepare the company to future growth.


Radical changes in strategy, culture, organization, management and human resources processes were implemented.

Through a creative financial strategy and through the development of strong credibility in international markets, it was possible to reduce the net debt to US$ 500 million and carry this debt with the net financial revenue.

As a result of the adopted measures, the production capacity increased from 400,000 ton/year to 1,300,000 ton/year, whereas the number of total employees fell from 8,000 to 2,300, expanding six-fold the productivity by employee.

During the five years while Luiz Kaufmann has led the company, Aracruz was transformed from a problematic company into a company reputed to have the best world level sector performance.