Forest-based industry announces R$67bn investments in paper and pulp
| Data de publicação | 25 Março 2024 |
The forest-based industry installed in Brazil announced investments of more than R$67 billion until 2028, mostly directed to pulp and paper projects, and a new multibillion cycle is under development
The expected structural growth in global pulp demand, combined with domestic consumption of packaging and tissue paper, and Brazil’s competitiveness will continue to drive the planting of forests and the expansion of installed capacity in the country, attracting funds from local and foreign investors
"After the investments announced until 2028, there is more to come. Brazil’s potential is huge, as it has the key elements for that: productivity, land, and science," says Paulo Hartung, executive president of the Brazilian Tree Industry (Ibá), highlighting the country’s expertise in forest management and improvement, which has been developed locally in academia and companies, over decades
Former governor and senator of Espírito Santo, Mr. Hartung says that if he were currently in charge of a state’s administration, he would encourage the planting of trees and create an incentive program as an alternative source of income for farmers. "It’s seasonal, but it creates good income." The forest sector is currently planting a record number of 1.8 million trees per day in Brazil
In 2028, the last year of the planned investment cycle, Arauco plans to put its first pulp mill into operation in the country. With an estimated investment of $3 billion, the Chile-based group will initially be able to produce 2.5 million tonnes per year at a unit to be built in the city of Inocência (Mato Grosso do Sul).
But the company’s plans for Brazil will not stop there. Although the Sucuriú Project currently includes the construction of a pulp line, the preliminary permit granted by the State Environmental Control Council (CECA) to the Chilean group involves 5 million tonnes per year, through investments of R$28 billion. The second line in Inocência could enter into operation as early as 2032.
Brazilian pulp and paper company Suzano, the owner of Cerrado, the largest project currently underway, has also designed the unit under construction in Ribas do Rio Pardo (Mato Grosso do Sul) to receive a second line in the future. Cerrado, which is among the largest private investments currently underway in Brazil, estimated at R$22.2 billion, will have an initial production capacity of 2.55 million tonnes of eucalyptus pulp per year —the largest single line in the world—and is expected to enter...
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