CMPC to acquire Brazil’s Iguaçu Celulose Papel for R$945.7 million
CMPC has reached an agreement to acquire the Brazilian company Iguaçu Celulose e Papel SA, a traditional company producing cellulose, paper and paper bags, from the states of Paraná and Santa Catarina, reinforcing its investment in the production of biodegradable and environmentally friendly packaging, as it understands that this is the future of the industry. With this acquisition, CMPC starts operating in Brazil with its three lines of action – sustainable packaging (biopackaging) adds to the Pulp business, with the Guaíba industrial unit, and Tissue Paper, with Softys.
The purchase will increase CMPC’s annual paper sack production capacity to around 1.5 billion units, consolidating its position as the second global player in this area.
The acquisition of Iguaçu, agreed in the amount of R$945.7 million, including the payment of existing debts, is part of CMPC’s strategy of becoming more and more a world reference in the sustainable packaging market, as the plants of The Group’s new company are dedicated to the manufacture of paper, paper and cellulose bags.
“Packaging made from natural fibers is the packaging of the future, as these are products that are friendly to the planet, recyclable and sometimes disintegrating, with a low carbon footprint. Therefore, continuing to grow in this segment is so relevant for CMPC and its sustainability goals”, explains the CEO of CMPC Companies, Francisco Ruiz-Tagle.
The facilities acquired from Iguaçu have annual aggregate manufacturing capacity of 105 thousand tons of pulp; 120 thousand tons of Sack-Kraft Paper; 21 thousand tons of special papers, in addition to conversion lines to produce 500 million units of paper bags per year; located in the states of Paraná (Piraí do Sul and São José dos Pinhais) and Santa Catarina (Campos Novos). The acquisition includes the company’s forest base, which has 11,821 hectares of productive area.