CMPC allocates nearly US$30 million to the expansion of its plants in the United States

Until 2023, Empresas CMPC —linked to the Matte group— had about 35 years of commercial presence in the United States, selling various products, but it had no industrial operations in the world's leading power, where home construction is intensive in wood use.

But in that year the United States became the ninth country where La Papelera established itself with productive presence. This came after it agreed at the time to purchase the company Powell Valley, present in the state of Kentucky with two factories dedicated to the development of remanufactured wood products.

Now, the Chilean company is taking new steps in the U.S. market, which has become complicated for local forestry firms due to the tariffs decided by Donald Trump's administration.

CMPC is developing a US$29.6 million project to modernize and expand the Powell Valley Millwork plants in Jeffersonville and Clay City, Kentucky. The initiative, the company said, is part of its long-term strategy to increase the competitiveness of its operations and strengthen its participation in the U.S. remanufacturing market.

Currently, the project is 65% complete and has entered its final execution stage. Start-up is scheduled for the end of 2027.

"The United States is a strategic market"

The expansion will double Powell Valley's production, including the possibility of processing up to 30,000 cubic meters of pine from CMPC's forests in Chile. Productivity is expected to increase by nearly 70%.

"The United States is a strategic market for CMPC and we see important opportunities to continue growing. This investment allows us to combine our production base in Chile with local industrial capacity, deepen relationships with customers and increase our share in higher value-added products," said CMPC's vice president of Wood and Packaging, Matías Lagos.

In Clay City, the investment aims to specialize the plant in the processing of poplar —álamo—, with improvements in automation, efficiency and raw material utilization, La Papelera explained.

The adjustments will increase capacity to produce moldings, glued panels and other more elaborately manufactured wood products.

Meanwhile, in Jeffersonville, the project seeks to strengthen pine production, with improvements aimed at absorbing larger volumes and expanding product finishing capacity.

The United States accounts for about 90% of sales in CMPC's remanufacturing business. From Powell Valley, the company can reach approximately 70% of the country's population within a 24-hour logistics radius.

At the end of August, CMPC received in Santiago a visit from Brian Kemp, governor of the state of Georgia, United States. The Chilean company's commercial platform in the United States is headquartered in Atlanta, the state capital.

Source:El Mercurio