Chilean CMPC to Perfom Market Analysis for Guaiba Pulp Mill Expansion

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Researched by Industrial Info Resources (Sugar Land, Texas)--Pulp, Paper & Wood company CMPC (Santiago, Chile) is performing feasibility studies for an expansion of the Guaiba pulp mill. The total investment cost for the project is estimated to be about $2 billion.

The project seeks to increase the plant's manufacturing capacity of hardwood/softwood pulp from 450,000 to 1.3 million tons per year. The plant expansion will involve the addition and replacement of equipment, as well as upgrades and improvements of installed equipment. Forest plantations will also be enlarged. According to plant officials, about 13,000 hectares of eucalyptus will be planted to supply the mill. Feasibility studies are expected to be completed by February 2011. Civil work is expected to start in the first quarter of 2013 and is scheduled to be completed during the first months of 2015.

The Guaiba pulp mill, located in the city of Guaiba (Rio Grande do Sul, Brazil), began operations in 1971 and directly employs 500 people. The mill manufactures kraft softwood pulp for the production of paper for printing and writing. At present, the plant generates 55 megawatts. The excess power not used by the plant is sold to the Central Interconnected System (SIC).

CMPC produces and commercializes wood, pulp, tissue, papers and paper products. Located in Santiago de Chile, the company has more than 20 operating mills in various Latin American countries and exports products throughout the world.

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