Chilean pulp giant CMPC, owner of Softys toilet paper, is expanding its footprint in Brazil, focusing on Rio Grande do Sul as the strategic base for its operations. With multi-billion-dollar investments, the company aims to establish the world’s largest pulp hub, solidifying its leadership in the sector.
“We are creating the largest pulp hub in the world. Nowhere else do you have two factories so close together, producing such significant volumes,” says Antonio Lacerda, CMPC’s General Director of Pulp in Brazil. Unlike competitors such as Suzano, Arauco, and Bracell—who are concentrating their mega-projects in Mato Grosso do Sul—CMPC is betting on Rio Grande do Sul for its strategic expansion.
The Natureza Project: Transforming Rio Grande do Sul into a Global Pulp Powerhouse
Last year, CMPC announced the Natureza Project, a landmark R$24 billion investment set to be completed by the end of the decade in Barra do Ribeiro (RS), located in the metropolitan region of Porto Alegre. The new plant, with a production capacity of 2.5 million tons of pulp per year, is expected to commence operations in 2029, coinciding with CMPC’s 20th anniversary in Brazil.
Complementing this investment, CMPC has also modernized its existing Guaíba (RS) plants, just 26 km from Barra do Ribeiro. This initiative aims to reduce environmental impact while boosting production efficiency.
“I tell our team that many companies would love to be in our position—leading a project of this magnitude, with a strong export market that’s less sensitive to domestic fluctuations, financial strength to invest, and career growth opportunities for everyone involved,” says Lacerda.
Why Rio Grande do Sul? A Strategic Choice for Growth
Brazil already accounts for 60% of CMPC’s business, and this percentage is set to rise with the Barra do Ribeiro facility.
“We are a company founded in Chile over 100 years ago, but our future is in Brazil,” Lacerda explains.
CMPC’s preference for Rio Grande do Sul over Mato Grosso do Sul is driven by favorable climate and soil conditions. The company’s eucalyptus trees are specifically adapted to colder climates, unlike Mato Grosso do Sul, where prolonged drought periods create severe water stress.
The new facility is projected to generate 12,000 direct jobs, with final approval pending an installation license from Fepam, the state’s environmental agency. “We expect the license by mid-next year,” Lacerda states. Additionally, CMPC plans to build a road connecting its two factories and a new waterway terminal to enhance logistics efficiency.
Investments in Logistics & Sustainability
CMPC is also allocating R$1 billion to develop a new terminal at the Port of Rio Grande, designed to handle nearly 5 million tons of pulp annually while creating 1,400 jobs. Currently, 97% of CMPC’s Brazilian production is exported, primarily to Asia and Europe.
In parallel, the company is advancing its sustainability initiatives. In Guaíba, CMPC recently completed the BioCMPC project, a R$2.75 billion investment that modernized its equipment and increased production capacity by 18%.
“Today, there is little left of the old Borregaard factory. We’ve modernized the entire plant and offices,” Lacerda notes, addressing past environmental concerns and emphasizing CMPC’s commitment to eco-friendly production.
A Promising Future for CMPC in Brazil
With a robust investment plan and a thriving global market, CMPC is poised to strengthen its position as a global pulp leader.
“Our strategy is clear—to expand in Brazil,” says Lacerda, hinting that further investments and new business ventures could be on the horizon.