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New factory in Brazil! Chilean company will invest R$25 BILLION in a new cellulose unit, and should generate 13 THOUSAND jobs in the country

Written by Ruth Rodrigues
Published 08/08/2024 às 19:34
Governance Committee is created to oversee CMPC's investment of US$4 billion in the new cellulose factory in RS.
Photo: CMPC/ Disclosure

Governance Committee is created to oversee CMPC's investment of US$4 billion in the new cellulose factory in RS.

The Chilean company CMPC confirmed a large investment for the state of Rio Grande do Sul, with the intention of building a new pulp mill of eucalyptus. The project, which requires an initial investment of 4 billion dollars, will be one of the largest in Brazil, significantly increasing the company's production capacity in the country.

Factory investment details

The new factory It will have a production capacity of up to 2,5 million tons of eucalyptus pulp per year. 

This volume represents more than double CMPC's current capacity in Brazil, which is 2,4 million tons.

The company also made it clear that there are possibilities for additional expansion in the future.

In addition to the investment of 4 billion dollars for the factory, CMPC plans to spend another 420 million dollars on improvements to road infrastructure and 150 million dollars on the development and expansion of port terminals in Rio Grande.

These improvements are essential for the logistical support and operational efficiency of the new industrial unit.

The Secretary of Economic Development, Ernani Polo, highlighted the importance of the project for the state's recovery.

“Even with the challenges faced recently, Rio Grande do Sul remains attractive for investment. Keeping projects underway is essential for our economic recovery,” said Polo.

He also highlighted that the project will generate around 13 thousand jobs during the implementation phase, which is crucial for the state's economic restructuring.

CMPC's investment was enthusiastically received by the state government, especially after the recent floods that impacted the region.

Governor Eduardo Leite expressed his gratitude to the company for continuing with the investment.

“This is a transformative project that will have a profound impact on the economy and the lives of Rio Grande do Sul. We thank CMPC for maintaining its commitment to Rio Grande do Sul, even after the floods,” said Leite.

Studies and Governance Committee

To assess the viability of the project and minimize possible environmental impacts, the state government delivered the Term of Reference for Environmental Impact Studies to CMPC.

This document marks the beginning of the socio-environmental studies necessary for the implementation of factory in Barra do Ribeiro.

In addition, a governance committee was created to monitor the progress of the project. The committee will be led by the Secretariat for Economic Development (Sedec) and will have the participation of several secretariats and government bodies.

The group will meet every 30 days to discuss and monitor the project stages, including the infrastructure necessary for access to the new factory and port terminals.

Committee Composition

The governance committee responsible for monitoring the implementation of the new factory pulp mill will be comprised of a diverse set of government and local entities.

Coordination will be the responsibility of the Economic Development Secretariat (Sedec), and the committee will include representatives from the Civil House (CC), State Attorney General's Office (PGE), Finance Secretariat (Sefaz), and Logistics and Transport Secretariat (Selt) .

In addition to these, the Autonomous Highway Department (Daer), the Secretariat for the Environment and Infrastructure (Sema), and the State Foundation for Environmental Protection (Fepam) will take part. The National Department of Transport Infrastructure (Dnit), and the city halls of Barra do Ribeiro, Pelotas, and Rio Grande will also be integrated into the Portos SA group.

This committee will meet monthly to oversee the project stages, ensuring that development is aligned with established environmental and infrastructure standards.

Regional impact of the new cellulose factory

CMPC's investment will not only bring a significant expansion of production of cellulose in Brazil, but will also have a positive impact on more than 70 municipalities in the region.

The creation of jobs and the development of regional infrastructure are expected to boost the local economy and offer new opportunities for the population.

The Chilean company, with this project, demonstrates a significant commitment to economic development and job creation in Rio Grande do Sul, highlighting the importance of foreign investments in the recovery and growth of regions affected by natural disasters.

The CMPC project represents a great opportunity for the state of Rio Grande do Sul, both in terms of economic growth and infrastructure modernization.

The new factory and associated investments are expected to generate long-term benefits for the region, helping to stabilize and strengthen the local economy.

With the approval of the studies and the creation of the governance committee, the next steps will involve implementing the proposed improvements and continuously monitoring the environmental and economic impact of the project.

Collaboration between CMPC and the state government will be crucial to the success of the factory initiative and the achievement of the established objectives.

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Ruth Rodrigues

Graduated in Biological Sciences from the State University of Rio Grande do Norte (UERN), she works as a writer and scientific disseminator.

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