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Empresas CMPC's Board of Directors approves expansion of Guaiba mill in Brazil
- Expansion will add 1.3 million tons of pulp capacity per year
By: PR Newswire
Dec. 6, 2012 12:51 PM
SANTIAGO, Chile, Dec. 6, 2012 /PRNewswire/ -- Empresas CMPC's Board of Directors today announced that they have approved the expansion of the Company's Guaiba mill, in the state of Rio Grande do Sul, Brazil.
"This investment is a milestone for CMPC, the largest in the company's history. The Guaiba II project will almost double our market share of global pulp and help us meet growing demand for high quality wood pulp from clients in all our markets," said Mr. Hernan Rodriguez, CEO of CMPC. "This important decision taken by the Board of Directors is another step in CMPC's internationalization, and takes our total investment in Brazil to US$4.5 billion."
The project consists of the construction and operation of a new bleached eucalyptus pulp production line, with a total capacity of 1.3 million tons per year. This unit will be in addition to the existing bleached eucalyptus line at the site, which currently has an annual capacity of 450,000 tons per year. The second line is expected to begin producing pulp by the first quarter of 2015.
With this investment, CMPC will increase its pulp production capacity to 4.1 million tons per year, consolidating its position as a leading worldwide pulp manufacturer. Guaiba II will incorporate the latest technologies in the production of pulp, and will be 100% self-sufficient in terms of pulpwood supply. In this way, CMPC will be adding production scale while also maximizing efficiency, in keeping with its track record as a cost-advantaged producer.
CMPC has obtained all state, municipal and environmental permits and authorizations necessary to carry out the expansion of the Guaiba plant.
"This investment demonstrates the Company's capacity to grow via world-class, geographically diversified production facilities," Mr. Rodriguez said.
Investment and Financing
The expansion of Guaiba involves a total investment in industrial assets of approximately US$2.1 billion. In relation to the financing of this project, the Board agreed:
CMPC will host a conference call today, Thursday December 6, 2012 at 3:30pm Santiago / 1:30pm New York to discuss the expansion of the Guaiba mill and the Company's strategy. To listen to the call, please dial +1-866-652-5200 (US) or +1-412-317-6060 (international) at least 5 minutes before the start of the call. The password is "CMPC Conference."
SOURCE Empresas CMPC
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