Horos Value Internacional on Suzano S.A.

Horos initiated a position in Suzano after reallocating capital away from stainless steel. Suzano is the world's largest pulp producer, with capacity almost three times that of its nearest competitor, and has expanded into packaging and tissue through both organic and inorganic investments. Its shares have been pressured by heavy investment, weak pulp prices, China's slowdown and uncertainty around Chinese vertical integration. Horos believes Suzano's industry-leading cost position allows it to endure the downcycle and emerge stronger, while family ownership improves alignment and the current valuation is attractive.