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CMPC Plans Investment in Brazil

April 18, 2017

Growth in tissues, diapers are top priority for Chilean company

The Chilean group CMPC, one of Latin America's largest producers of pulp and paper will invest R$1 billion ($320 million) in Brazil during the next five years as part of an effort to meet growing domestic demand and achieve leadership in the market segments—including tissue paper and baby diapers—where it is not yet a leader. 
 
Since the purchase of Rewards in 2009, CMPC has invested R$1.1 billion ($350 billion) in the business. In Brazil, in addition to the production of tissue paper and diapers, which is going to become its most important business area outside of Chile, the group owns Celulose Riograndense, a pulp producer based in Guaíba (RS), which was  bought in 2009 from former Aracruz (now Fibria), for $1.43 billion. Last year, its global turnover reached $4.9 billion.
 
Much of the investment dollars will be spent expanding and modernizing production capacity in all business areas, on the local launch of the company’s Elite tissue brand—a market leader in Latin America—and innovation. The company has four production units in the country‑Recife (PE), Caieiras (SP), Mogi das Cruzes (SP) and Guaíba (RS)—and is considering the possibility of installing new capacities in other regions, particularly in the Northeast, North and Midwest, which offer great growth potential and interest to the company. Expansion plans already approved by the company include the doubling of production capacity for baby diapers and an increase in institutional tissue proudction in Recife.
 
In the diaper area, CMPC Melhoramentos owns the Babysec and Cotidian brands and was reportedly interested in acquiring the Brazilian company Hypermarcas before it was sold to the Ontex Group earlier this year. In this segment of business— the youngest of the group in Brazil—the goal is to triple the billing in the next five years.

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