2016 saw the RGE group of companies under the guidance of business leader and entrepreneur, Sukanto Tanoto, acquire Bracell, one of the world’s largest producers of specialty cellulose, to be managed as one of their own. Bracell is the producer of a specialty cellulose that is used to produce an assortment of both consumer and industrial goods ranging from textiles, baby wipes, ice-cream, tire cords and more.
With its impressive operation based in Brazil, Bracell is the owner of a colossal renewable plantation which grows 150,000 hectares of eucalyptus on pristine freehold land. Additionally, Bracell produces specialty grade dissolving wood pulp and rayon grade dissolving wood pulp via a state-of-the-art mill.
The Privatization of Bracell within the RGE group of companies
This US $ 1.1 Billion privatization exercise is an auspicious milestone for both Bracell, the RGE group of companies and its founder Sukanto Tanoto, who oversees an operation worth an estimated US $15 Billion, providing employment for over 50,000 employees.
Bracell is a company held in high esteem worldwide and has garnered itself several awards over the course of its operation, while also delivering shareholder returns of 273% over the past three years. These accolades are very much in line with the principles and vision of the Tanoto Foundation and include:
- The Excellence of Listed Enterprise Awards for 5 consecutive years between 2011-2015, from Capital Weekly
- Best Environmental Responsibility Company in 2015, from CorporateGovernance Asia
- Asia’s Outstanding Company on Corporate Governance for 3 consecutive years between 2012-2014, from CorporateGovernance Asia
Looking to the future
Tey Wei Lin, Bracell’s Chief Executive Officer has expressed:
‘As a private company moving ahead, our business strategy and commitment to our customers and business partners are unchanged. Leveraging on our integrated and sustainable plantations in Brazil, we remain focused on producing value-added, high-quality specialty cellulose and offering best-in-class service to our customers.’
Image credit: Inside-RGE
Image URL: http://www.inside-rge.com/Bracell-Privatisation-2016