News

Luis Felipe Gazitua, President of Empresas CMPC: “Brazil Values Private Investment as a Driver of Development, with Stable Regulations and Rules”

Sponsors

Empresas CMPC acknowledges a favorable environment for investments in Brazil, a country it entered in 2009 and where it has invested over US$6 billion, highlighting its pulp plant in the city of Guaíba, in the state of Rio Grande do Sul. In Brazil, the company also competes in the tissue (Softys) and biopackaging markets.

In the case of Chile, however, the paper company has pointed to adverse conditions for its business operations and the expansion of the forestry industry in general, due to issues such as wildfires, theft, land invasions, and insecurity affecting the sector. This perspective has even led to friction with the government.

The president of CMPC, Luis Felipe Gazitúa, yesterday highlighted Brazil’s advantages for private investment during the Chile-Brazil Business Forum, held on the occasion of Brazilian President Luiz Inácio Lula da Silva’s visit.

Gazitúa, in his role as president of the Chilean chapter of the Chile-Brazil Business Council, spoke at an event at the W Hotel, stating, “Based on our experience in Brazil, we recognize a country that values private investment as a driver of development, with stable regulations and rules—no less demanding, but clear enough to provide guarantees for both businesses and society as a whole, as well as environmental protection.”

Awareness of the Private Sector’s Role

When later asked for details about his speech, Gazitúa elaborated: “The fact is that Brazil is the top destination for Chilean investments outside our country, and our experience as CMPC shows that there is a strong appreciation for the role private industry plays in national development and improving people’s quality of life—that’s what I emphasized today. We also see this in other Latin American countries, and it’s undoubtedly present in Chile as well.”

He added, “We have industrial operations in nine countries, and everywhere, including Chile, we find welcoming environments for investment. The difference is that in some places, there’s greater awareness of the private sector’s role. Brazil is an industrialized country that replaced imports for many years and therefore has a clear understanding of the importance of private enterprise.”

Multi-Billion-Dollar Plan

In late April, CMPC announced the start of evaluating a plan worth over US$4.5 billion to expand pulp production in Rio Grande do Sul, Brazil.

“We have a schedule tied to the permitting process in Brazil, and we’re making progress on timelines. Our estimate is that the permits will be ready by 2026, and by then, we’ll have completed some initial studies that will allow the project to be presented to the board for approval,” he stated.

Regarding the floods in Rio Grande do Sul in May, Luis Felipe Gazitúa noted, “Fortunately, we didn’t have issues at the (Guaíba) plant, except for wood supply disruptions.”

Source: Subscription edition ofEl Mercurio