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CMPC Warns of Possible Pullback in Chile and Announces Over US$4 Billion Investment in Brazil

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The company cited unfavorable conditions in our country and set its sights on an ambitious project in the South American giant.

Chilean forestry company CMPC, one of the largest in Chile, has issued a warning about the future of its investments in the country due to a series of challenges facing the industry, including forest fires, timber theft, and insecurity in certain areas.

Luis Felipe Gazitúa, president of CMPC, stated in an interview with the newspaper *El Sur* that if conditions in Chile do not improve, the company could seek investment opportunities elsewhere. Despite this warning, the executive assured that the company has no plans to withdraw from the country.

However, the firm recently announced an investment of US$850 million for 2024, of which only 30% will be allocated to Chile. This announcement comes as CMPC is evaluating a comprehensive project in Brazil, which would include a new pulp plant in the state of Rio Grande do Sul.

The "Natureza" project not only includes the construction of a factory capable of producing up to 2.5 million tons of pulp annually but also improvements in road and port infrastructure, with a focus on sustainability and conservation.

The estimated investment for the new industrial unit in Brazil is approximately US$4 billion, with additional spending on infrastructure and a new port terminal. CMPC has begun the process to obtain the necessary permits, and if approved, the initiative would be presented to the company's board for a final decision by mid-2026.

The situation in Chile contrasts with the opportunities CMPC sees in Brazil, where the company could carry out one of its most ambitious projects to date. Meanwhile, the forestry industry in Chile hopes for the implementation of public policies that encourage development and provide a safer environment for investments.

Photo: CMPC