The pulp and paper sector in Brazil is fast becoming the third largest in the world.
In 2009 due to the international financial crisis the Brazilian pulp and paper industry had to postpone its investment programmes. However, thanks to the economy’s positive outlook and the emerging market’s increase in demand, most notably from China, those programmes have resumed.
Over the next seven years an estimated US$20 billion is going to be invested in the nation’s forest base and in the construction of new mills. This investment is both well calculated and ambitious. At the moment pulp production is at 13.4 million annual tonnes, by the end of 2017 this is expected to reach 20 million annual tonnes. In addition, during the same period, planted forest areas are predicted to grow by 25% and paper production will rise from 9.3 million tonnes to 12.5 million tonnes.
This has all come about through the new global scenario in the pulp and paper sector. While the international financial crisis reduced global consumption, prices and raw material demand in traditional markets it also opened up opportunities to expand sales in growing markets, in particular China.
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July 23rd, 2010 at 1:37 PM
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