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With Three Major Production Lines — Two from Suzano and One from Eldorado — and New Ventures from Bracell on the Way, Mato Grosso do Sul Consolidates as a Hub for Investment and Growth in the Pulp Sector.
The pulp sector in Brazil is undergoing a true revolution, with over 70% of the R$ 105 billion in planned investments being allocated to Mato Grosso do Sul. This transformative movement is placing the state at the center of the global pulp map, with major industry players choosing southern 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 nearly R$ 75 billion in contributions over the next three years, the state has consolidated itself as the Pulp Valley. This recognition was formalized during the 56th Congress and International Exhibition of Pulp and Paper held by ABTCP in São Paulo, where the president of the Brazilian Tree Industry (Ibá), Paulo Hartung, made the announcement alongside political leaders from the country.
This astronomical amount allocated to the state reinforces Mato Grosso do Sul’s strategic importance in the sector. According to Hartung, the investment portfolio for the pulp sector in Brazil is one of the largest in the private sector, with a total of R$ 105 billion nationwide, more than R$ 70 billion of which is in Mato Grosso do Sul alone. With the support of the local government, which is investing in deregulation and connectivity, the state has become an attractive destination for industry giants.
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The Second Largest Hub for Planted Forests in Brazil
It is not only in investment numbers that Mato Grosso do Sul stands out. The state is the second largest hub for 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 the number is expected to grow, with projections reaching 2.5 million hectares in the coming years, further solidifying the importance of Mato Grosso do Sul as the Pulp Valley.
The forestry sector in the state grew by 228,000 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 like Suzano, Eldorado, and Arauco establishing or expanding their operations in the region.
Suzano, Eldorado, and Arauco: Industry Giants Bet on the Pulp Valley
The municipality of Três Lagoas, in Mato Grosso do Sul, is the beating heart of pulp production in Brazil. Currently, the city hosts three production lines, two from Suzano and one from Eldorado, with an installed capacity of 4.9 million tons of pulp annually. And this number keeps growing.
Suzano, for example, has increased its production capacity by 2.55 million tons with the commissioning of the Cerrado Project, raising the total capacity of the state to an impressive 7.4 million tons annually. Meanwhile, Arauco, a Chilean giant in the sector, has announced that it is expanding its plant in Inocência to become the largest pulp factory in the world, increasing production from 2.5 million to 3.5 million tons annually.
These investments demonstrate how the Pulp Valley in Mato Grosso do Sul has established itself as a strategic hub for the global pulp industry, attracting the attention of international giants.
Mato Grosso do Sul is About to Receive New Ventures
In addition to the already consolidated investments, Mato Grosso do Sul is about to receive new ventures. One of the largest groups in the dissolvable pulp sector, Bracell, has announced plans 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 potential major project is the entry of the multinational Portucel Moçambique, controlled by the Portuguese company The Navigator Company, which is considering the establishment of a new factory in Mato Grosso do Sul. The strategic location, along with tax incentives and a favorable business environment, makes the state the ideal place for these mega-ventures.
Economic Impact of Investments in the Pulp Valley
Investments in the pulp sector in Mato Grosso do Sul not only drive the growth of companies in the sector but also create a positive impact on the entire economy of the state. Economist Eduardo Matos points out that the establishment of large industries, such as those in pulp, stimulates other sectors, generating jobs and strengthening income flow.
According to Matos, the chain reaction created by these investments is notable. “When a large industry sets up in a region, it attracts a series of businesses, generating an increase in monetary flow and promoting local economic development,” explains the economist.
With billion-dollar investments and the expansion of large companies, Mato Grosso do Sul positions itself as the largest pulp hub in Brazil and one of the most important in the world. The state, known as the Pulp Valley, is ready to continue growing and attracting even more investments in the pulp sector, consolidating its role as a global reference.
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