More than 9 000 people have worked on the construction of the Veracel Pulp Mill in Brazil, which will start operating in mid-2005.

Where sustainability is concerned, priority areas at this stage include: responsible reductions in the workforce as the construction project is completed; responsible outsourcing of operations; employee well-being, with an emphasis on health and safety; land use issues; environmental management in the plantations and at the mill; communication and dialogue with stakeholders; and social investments.

After the pulp mill is completed

One of the key social issues concerning Veracel’s operations during 2004 and 2005 is reductions in the construction project workforce. During 2004 Veracel established a process for managing the impacts of workforce reductions. The objectives are to minimise the negative impacts of reductions in the workforce, and to maximise the utilisation of the local workforce.

A clear management process has been defined, including reporting requirements for contractors and details of the minimum benefits to be given to contractors’ redundant employees. Veracel has also established co-operation with the local employment office in order to improve employees’ prospects of finding new work after the construction work at the mill is completed. After the whole process is over, an evaluation report will be prepared to review actual performance against the targets set.

Safety management at the construction site

Safety at the Veracel Project has been at a good level, except for one fatal traffic accident. Safety training has also been given to contractors’ employees. Strict safety regulations and regular monitoring of safety practices have been the key elements in promoting and maintaining safety performance. Lost-time accidents (number of accidents per million worked hours) totalled 1.2 among Veracel employees and 5.2 among construction project employees.