International Paper raises its bet in Brazil
DCI - 02/13/2008
International Paper, one of the largest producers of paper in the world, plans to turn the Brazilian branch into an exporting center for Latin America, the United States, and Europe. From the investment of US$ 2.1 billion the United States made in the last three years, US$ 1.5 billion was directed for Brazil. The funds were intended for the acquisition of a unit of paper from the VCP (Votorantim Celulose e Papel), in Luiz Antônio (SP), and to start the construction of a plant in Três Lagoas, expected to be ready in 2009. According to the financial officer of International Paper do Brasil Pierre Roulet, the investments in the Brazilian subsidiary aim at leveraging the exportations of the group, mainly in Latin America. The unit acquired from the VCP has the production capacity of 400 thousand tons per year, the same volume produced by the unit of Mogi Guaçu (SP). With the Três Lagoas Unit (MS), the annual productive capacity of the company shall reach 1 million tons; from this volume, nearly 50% will be intended for the foreign market - this project represents an investment of US$ 300 million, US$ 121 million of which invested in 2007 alone. According to the company, the works are in accordance with the flowchart and more than 40% of the project has already been performed. According to Roulet, the slow-down of the American economy should not affect the performance of the company. According to him, the consumption of paper in the United States is not associated to the behavior of the economy. "The American financial crisis has no cause and effect in the consumption of paper; therefore, this crisis spree should not influence our market", emphasized Roulet. The International Paper, founded in 1898 in the United States, is a company that produces uncoated paper and packages, with global performance in markets and plants in North America, Europe, Russia, Latin America, and Asia. Its businesses with uncoated papers and packages are not complemented by the Xpedx, the largest distributor of printing paper, supplies and printing equipment of North America. The company has associations with Ilim Pulp, in Russia, and Sun, in China. In Brazil, the company is present since 1960 with its manufacturing unit located in Mogi Guaçu (SP) and it is responsible for the supply of paper with the trademarks Chamex, Chamequinho and Chambril in the domestic and foreign markets.