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With three large production lines — two from Suzano and one from Eldorado — and new Bracell ventures on the way, Mato Grosso do Sul is consolidating itself as a hub for investment and growth in the cellulose sector.
The pulp sector in Brazil is undergoing a true revolution, with more than 70% of the R$105 billion in planned investments being earmarked for Mato Grosso do Sul. This transformative movement is placing the state at the center of the global pulp map, with major industries in the sector choosing Mato Grosso do Sul as the stage for their expansions. In this article, we will explore how the Mato Grosso do Sul Pulp Valley has become an icon of investment and growth in the pulp sector.
R$ 75 billion in investments in Mato Grosso do Sul
Mato Grosso do Sul is experiencing a moment of great prominence on the national and international scene when it comes to investments in the pulp sector. With the forecast of receiving almost R$ 75 billion in investments over the next three years, the state has consolidated itself as the Pulp Valley. This recognition was formalized during the 56th International Pulp and Paper Congress and Exhibition of ABTCP, in São Paulo, where the president of the Brazilian Tree Industry (Ibá), Paulo Hartung, made the announcement alongside the country's political leaders.
This astronomical amount allocated to the state reinforces the strategic importance of Mato Grosso do Sul in the sector. According to Hartung, the investment portfolio of the pulp sector in Brazil is one of the largest in the private sector, with a total of R$105 billion across the country, with more than R$70 billion in Mato Grosso do Sul alone. With the support of the local government, which invests in reducing bureaucracy and connectivity, the state has become an attractive destination for giants in the sector.
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The second largest hub of planted forests in Brazil
Mato Grosso do Sul stands out not only in terms of investment numbers. The state is the second largest hub of planted forests in Brazil, with over 1,4 million hectares dedicated mainly to eucalyptus cultivation. This resource is essential for the paper and pulp industry, which has its largest production plants in the state. And this number is expected to grow, with forecasts of reaching 2,5 million hectares in the coming years, further consolidating the importance of Mato Grosso do Sul as the Pulp Valley.
The state's forestry sector grew by 228 hectares in 2023, reinforcing the accelerated pace of expansion. It is this combination of factors that makes Mato Grosso do Sul a fertile ground for investments in the pulp sector, with giants such as Suzano, Eldorado and Arauco installing or expanding their operations in the region.
Suzano, Eldorado and Arauco: Industry giants bet on the Cellulose Valley
The municipality of Três Lagoas, in Mato Grosso do Sul, is the beating heart of pulp production in Brazil. The city currently houses three production lines, two of which are owned by Suzano and one by Eldorado, with an installed capacity of 4,9 million tons of pulp per year. And this number continues to grow.
Suzano, for example, expanded its production capacity by 2,55 million tons with the start of operations of the Cerrado Project, raising the state’s total capacity to an impressive 7,4 million tons per year. Meanwhile, Arauco, a Chilean giant in the sector, announced that it is expanding its plant in Inocência to become the largest pulp mill in the world, increasing its annual production from 2,5 million tons to 3,5 million tons.
These investments show how the Celulose Valley in Mato Grosso do Sul has established itself as a strategic hub for the global cellulose industry, attracting the attention of international giants.
Mato Grosso do Sul is about to receive new developments
In addition to the investments already consolidated, Mato Grosso do Sul is about to receive new ventures. One of the largest groups in the dissolving pulp sector, Bracell, announced its intention to invest R$25 billion in the construction of a new factory in the state. The plant will be built in the municipality of Água Clara and promises to further elevate the state's status as the leading producer of pulp in Brazil.
Another possible major project is the entry of the multinational Portucel Moçambique, controlled by the Portuguese company The Navigator Company, which is studying the installation of a new factory in Mato Grosso do Sul. The strategic location, combined with tax incentives and a favorable business environment, makes the state the ideal place for these mega-projects.
Economic impact of investments in Vale da Celulose
Investments in the pulp sector in Mato Grosso do Sul not only drive the growth of companies in the sector, but also generate a positive impact on the entire economy of the state. Economist Eduardo Matos highlights that the installation of large industries, such as pulp, stimulates other sectors, generating jobs and strengthening the flow of income.
According to Matos, the knock-on effect created by these investments is notable. “When a large industry sets up shop in a region, it attracts a series of ventures, generating an increase in the flow of money and promoting local economic development,” explains the economist.
With billion-dollar investments and the expansion of large companies, Mato Grosso do Sul is positioned as the largest pulp hub in Brazil and one of the most important in the world. The state, known as the Cellulose Valley, is ready to continue growing and attracting even more investments in the pulp sector, consolidating its role as a global reference.
