CMPC obtains prior environmental license for new project in Brazil

Natureza, CMPC's new flagship project in Brazil, which would be added to the Guaíba plant in that country, received the prior license granted by the Fundação Estadual de Proteção Ambiental (Fepam) of Rio Grande do Sul. Thus, the firm advances to a new stage of the environmental licensing process for the industrial facilities that the paper company, controlled by the Matte family, seeks to build in the town of Barra do Ribeiro.

The initiative is part of CMPC's long-term strategy, aimed at strengthening its core businesses —forestry, pulp and mass consumer products—, with a focus on greater scale, efficiency and competitiveness, the company said in a statement.

The investment in this project amounts to US$ 4.6 billion and is strategic for the company, since it would place it in the first quartile of net costs, in a challenging context in the world of pulp production. It would add 2.5 million tons of the commodity (short-fiber pulp).

CMPC has just agreed to sell its corrugated business in Chile to the multinational Smurfit Westrock, for about US$ 420 million. On Wednesday, meanwhile, it announced the divestment of forestry assets for US$ 365 million in the Maule region to J.P. Morgan Chase. These sales are part of a process aimed at focusing on assets where the firm has prospects for scaling and also aim at financial strengthening.

The Prior License, explained the company, recognizes the environmental viability of the project at the proposed location. Obtaining it allows progress toward the following stages —the Installation License and, subsequently, the Operating License—, it added. However, it warned that it does not authorize the start of construction or the execution of associated works. "The Prior License is an important step and reflects the technical work of the authorities, State institutions, the communities of Barra do Ribeiro and the company. Natureza is a strategic and future-oriented project for CMPC, which will allow us to continue competing globally with a high level of efficiency," highlighted the general director of CMPC Celulosa Brasil, Antonio Lacerda.

Source:El Mercurio