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October 8, 2019

Brazil’s forest sector will invest USD 7.84 billion in additional production capacity by 2023

Brazil’s forest sector will invest USD 7.84 billion in additional production capacity by 2023

Investments in pulp, soluble cellulose, paper and wood panels - the sector represented by the Brazilian Tree Industry Asociation (Ibá) -are growing. As a result Ibá has updated its investments projection for the planted forest sector, estimating it at USD 7.84 billion (BRL 32.6 billion) for the 2020 and 2023 period.

These investments are to be carried out in six states and represent increases of 3.2 million tons in pulp production, 1.9 million tons in soluble cellulose, 1.2 million tons of paper, and an additional 570,000 m3 of MDF and 450,000 m3 of lumber. There are plans to build at least seven new factories and the sector is expected to create over 35,000 jobs during their construction and 11,000 direct permanent jobs when the units begin operations.

Ibá president Paulo Hartung emphasizes that these resources involve the entire chain of forest operations, from planting to manufacturing the final product, including technology and innovation.

According to data from the association, USD 4.90 billion (BRL 20.4 billion) of this total will be invested in units that will produce pulp and kraftliner paper for packaging, reinforcing the important role of cardboard packaging in the bioeconomy.

Furthermore, Ibá board president Horacio Lafer Piva explains that research and development in this segment have increasingly broadened the number of products originating from planted trees, which can be seen in expanding investments in units that produce other products, such as soluble cellulose, which can be used in a variety of applications (mainly textiles, with viscose). This segment will receive investments of USD 2.5 billion (BRL 10.5 billion) by 2023, with resources from Bracell (BRL 7 billion in São Paulo) and Duratex (BRL 3.5 billion, in Minas Gerais).

In addition to these projects, funding of USD 216 million (BRL 900 million) is being earmarked for wood panels by Berneck in Santa Catarina, USD 144.3 million (BRL 600 million) for printing and writing paper by International Paper in Mato Grosso do Sul, and USD 48 million (BRL 200 million) by Anin for its tissue paper operations in Mato Grosso do Sul.

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