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CMPC Plans $850 Million Investment in 2024, Focusing Outside Chile

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• Less than 40% of the forestry giant's investment will remain in its home country, amid criticism of public policy.

At a recent Ordinary Shareholders' Meeting, Luis Felipe Gazitúa, chairman of CMPC, reaffirmed the company's commitment to Chile, dismissing any possibility of withdrawal from the country. Despite concerns expressed about the "retreat" of the Chilean forestry industry, Gazitúa assured that the company, with over a century of history, remains steadfast in its commitment to Chile.

CMPC's general manager, Francisco Ruiz-Tagle, detailed that of the $850 million projected for investments in 2024, less than 40% will be invested in Chile. The funds will be distributed between the forestry and timber sector, with a planting plan in both Chile and Brazil, and the pulp sector, with projects for technological and innovation improvements. Additionally, a portion will be allocated to Softys, the tissue paper and personal hygiene products subsidiary, and to CMPC Biopackaging, the packaging division.

The company has also signaled its interest in exploring growth opportunities in the Americas, though it does not rule out looking at options outside the region. These statements come at a time when the forestry industry faces challenges such as the decline in plantation areas, threats of land seizures, intentional fires, and theft.

On the political front, Gazitúa has called for reforms, including changes to the political system and progress in pension matters. He has criticized the so-called fiscal pact as a tax increase and emphasized the importance of providing certainty and stability for investments in Chile.

CMPC's stance reflects broader concerns in the Chilean business sector about the investment climate and the country's economic growth. The company aligns with proposals such as reducing the first-category tax but stresses that beyond the tax rate, the essential need is for clear and stable rules that encourage investment.