CMPC secures preliminary environmental license for its 4.6 billion dollar Natureza pulp project

Regulatory milestone for a massive capacity expansion

On October 22, the State Environmental Protection Foundation (FEPAM) of Rio Grande do Sul officially granted the Preliminary License for CMPC's Natureza project. This critical regulatory milestone validates the environmental viability of a proposed 2.5 million-ton-per-year bleached hardwood kraft pulp (BHKP) mill in the municipality of Barra do Ribeiro, Brazil. While the permit does not authorize immediate construction, it clears the path for the subsequent Installation and Operating licenses required to break ground.

The US$4.6 billion (approximately R$27 billion) initiative represents one of the most significant capital deployments currently advancing in the South American pulp sector. The comprehensive plan extends far beyond the $4 billion industrial unit itself. CMPC has allocated $420 million for regional road infrastructure improvements and $150 million for the development of a new port terminal in Rio Grande. Located just 34 kilometers from the company's existing Guaíba operations, the Barra do Ribeiro site is strategically positioned to leverage established logistical corridors and forestry assets.

Market implications and strategic timing

For the global tissue, packaging, and specialty paper markets, the eventual injection of 2.5 million tons of highly competitive BHKP capacity signals a structural reinforcement of supply dynamics. CMPC has structured the Natureza project as the central pillar of its 2030 corporate strategy, aiming to expand its production scale and maintain a low cash-cost position in an increasingly competitive global landscape.

Following this environmental endorsement, CMPC's board of directors is positioned to make the final investment decision. The company has spent the past two years meticulously advancing the engineering, financing plans, and commercial strategy for the site. By integrating industrial expansion with sustainable associative forestry and robust infrastructure development, CMPC is actively reinforcing Brazil's position as the undisputed epicenter of high-yield eucalyptus pulp production.