Brazil-based Aracruz Celulose S.A. (ARA) is the world's largest producer of bleached eucalyptus pulp, as well as one of the lowest-cost producers of this product. The company is responsible for 31% of the global supply of the product, which is used in the production of a wide range of paper products, including premium tissue, printing and writing papers, liquid packaging board, and specialty papers. The company runs 247,000 hectares of eucalyptus plantations intermingled with 128,000 hectares of company-owned native forest reserves, which are specially maintained to preserve the balance of the ecosystem. Aracruz's production of pulp reaches 2.5 million tons per year and is distributed between three pulp making units: Barra do Riacho, in the State of Esp rito Santo (Southeast Brazil), Guaiba (formerly Riocell), in the state of Rio Grande do Sul (South Brazil), and a third pulp unit, Veracel Celulose. Veracel is a 50/50 partnership between Aracruz and Stora Enso, the Finland-based paper manufacturer. Startup of operations began in May 2005, three months ahead of its original schedule. Veracel has the capacity to produce 900,000 tons of pulp and its entire production will be distributed to its shareholders in direct proportion to their respective economic interests. Aracruz Produtos de Madeira, a subsidiary of Aracruz, produces eucalyptus hardwood lumber for making furniture and meeting flooring requirements. Aracruz also owns a specialized private port, Portocel, near the pulp mill at Esp rito Santo, through which more than 90% of the company's pulp production is exported. The company exports approximately 98% of its output to markets in North America (35%), Europe (43%), Asia (20%) and Latin America (ex-Brazil) 0.4%, while the balance is sold in Brazil.