CMPC to buy Brazilian pulp and paper producer Iguaçu

13 Dec 2021 − 

Brazilian company CMPC has announced the acquisition of Iguaçu. The takeover will bring new capacities for sack kraft paper and paper sacks as well as pulp, in particular.

Chilean pulp and board producer Empresas CMPC is expanding and will acquire Brazilian producer of pulp, paper and packaging Iguaçu Celulose, Papel. Iguaçu operates three mill in Brazil's Paraná and Santa Catarina states with total annual capacity for 105,000 t of pulp, 120,000 t of sack kraft paper and 21,000 t of speciality paper as well as converting lines to produce around 500 million paper sacks per year. The transaction will also include 1.9 million m³ of forestry assets.

The transaction price was put at roughly BRL946m (about €151m). The sum will cover the value of Iguaçu's assets as well as current debts. The transaction is still subject to several conditions, such as approval from the Brazilian competition authority, and is expected to be completed within the next 90 days.

CMPC produces cartonboard, paper, plywood and pulp. At its plants in Chile and Brazil, the company currently has a combined capacity of 4 million tpy of bleached eucalyptus pulp as well as bleached and unbleached softwood kraft pulp.

The company is currently also expanding its capacities at the Guaíba 2 pulp mill in southern  Brazil. In the course of a debottlenecking project called Bio CMPC, the line’s capacity will be increased by 350,000 tpy of eucalyptus pulp. The machine can currently make 1.5 million tpy of BEK pulp – a figure that will rise to 1.85 million tpy after the upgrade. CMPC wants to complete this modernisation work in the fourth quarter of 2023.

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