The Brazilian company Suzano, with a market value of over US$ 12 billion, leads the pulp sector both in Brazil and internationally, positioning itself as the main supplier to China. According to data from Hawkins Wright, until August 2023, Suzano produced 13.4 million tons of pulp, far surpassing Chile’s Arauco, which in the same period reached 4.3 million tons.
Arauco, however, announced an investment of US$ 4.6 million in the Sucuriú Project plant in Mato Grosso do Sul, underscoring Brazil’s potential in the industry. The country produces 47% of global hardwood, well above the 13% produced by Chile and Uruguay combined.
Suzano remains the undisputed leader in the production of bleached eucalyptus kraft (BEK) pulp, with China as its main market. The Brazilian company operates eight pulp mills and has 1.5 million hectares planted and certified, generating 13.4 million tons of pulp annually. It also produces 1.3 million tons of paper, representing almost 40% of the local market.
Brazil, already a leader in the region, continues to attract large investments in the forestry industry. The Brazilian Tree Industry (Ibá) reported that investments are projected to exceed US$ 19 billion up to 2028. Among the projects are those announced by Arauco and CMPC, which will invest more than US$ 4.5 billion each in new mills.
Other companies also operate in this market, such as Finland’s UPM, which supplies around 5 million tons of pulp, while Domtar and Bracell produce 6 and 5 million tons, respectively, in association with other firms. In addition, CMPC, the Chilean company, plans to increase its production by 2.5 million tons in the next few years with the construction of its Natureza complex.
Although Brazil leads the regional market, countries such as Chile and Uruguay are also in the sights of investors, with European companies such as UPM, Metsa-Botnia and Stora Enso actively present in both countries. In Uruguay, forestry production accounts for about 4% of GDP, while, in Chile, the forestry industry contributes more than 3% of GDP, with CMPC and Arauco as the main local players.
