Industry Research Report on the Pulp & Paper in Chile.¶

Value Chain outline¶

The pulp and paper industry value chain in Chile is a multi-stage process that primarily revolves around the utilization of fast-growing forest plantations, particularly pine and eucalyptus. The main steps involve forestry, pulp production, paper manufacturing, converting, distribution, and to some extent, recycling.

Identification and description of each step in the value chain¶

Forestry: This is the initial stage, focusing on the establishment, management, and harvesting of forest plantations. Chile has a significant area dedicated to these plantations, which are the primary source of raw material for the pulp and paper industry. Pulp Production: In this stage, wood harvested from forests is processed into pulp. Chile is specialized in chemical pulp production, primarily using the Kraft process. This involves debarking and chipping the wood, followed by a chemical process to separate cellulose fibers from lignin. Paper Manufacturing: Pulp is then processed into various types of paper and paperboard. This involves further processing of the pulp and forming it into sheets or rolls. Converting: This step involves transforming large rolls of paper or paperboard into finished products such as boxes, bags, tissue products, and printing and writing papers. Distribution: The finished pulp and paper products are then distributed to domestic and international markets. Chile is a significant exporter of pulp and paper products. Recycling: While not as extensively detailed in the provided sources as other stages, the value chain can also include the collection and processing of recovered paper for use in manufacturing, particularly for products like containerboard. Some companies are also incorporating recycled wood into their processes.

Identification and description of segments for each step of the value chain.¶

Forestry: * Plantation Management: Activities include site preparation, planting, fertilization, growth control, and road construction. * Harvesting: This involves felling trees and preparing them for transport to mills. * Forest Certification: Ensuring sustainable forest management practices through certifications like FSC and PEFC.

Pulp Production: * Wood Reception and Preparation: Debarking and chipping of wood. * Pulping Process: Chemical (Kraft process) or mechanical methods to separate fibers. Chile primarily uses the Kraft process. * Bleaching: Whitening the pulp for certain paper grades. * Drying and Baling: Preparing pulp for transport or further processing.

Paper Manufacturing: * Stock Preparation: Further refining and treatment of pulp. * Paper Machine Operation: Forming, pressing, and drying the paper web. * Finishing: Calendering, slitting, and winding the paper into rolls or sheets.

Converting: * Cutting and Shaping: Transforming paper and board into desired sizes and forms. * Printing and Folding: Adding graphics and creating final product structures (e.g., boxes, bags). * Assembly: Putting together components to create the final product.

Distribution: * Logistics and Transportation: Moving raw materials and finished goods. * Sales and Marketing: Reaching domestic and international customers. * Export/Import: Managing international trade of pulp and paper products.

Recycling: * Collection: Gathering waste paper from various sources. * Sorting and Baling: Preparing recovered paper for processing. * Deinking and Pulping: Processing recovered paper into usable fiber for papermaking.

List of types of players in each segment¶

Forestry: * Large integrated forestry companies (also involved in pulp and paper). * Smaller independent forest owners and suppliers. * Government forestry agencies (e.g., CONAF). * Certification bodies (e.g., FSC, PEFC).

Pulp Production: * Large-scale pulp mill operators. * Suppliers of chemicals and processing equipment. * Energy providers (including biomass power plants operated by pulp companies).

Paper Manufacturing: * Integrated pulp and paper manufacturers. * Paper mills specializing in specific grades (e.g., containerboard, tissue).

Converting: * Companies producing finished paper products (e.g., packaging, tissue). * Printers.

Distribution: * Pulp and paper companies' own sales and logistics divisions. * Third-party logistics providers. * Wholesalers and dealers. * Trading companies.

Recycling: * Waste management companies. * Recycling facilities. * Paper manufacturers utilizing recycled fiber.

Detailed description of the main activities within each segment.¶

Forestry: Main activities involve intensive management of forest plantations, including ground preparation, planting of selected species (primarily Radiata Pine and Eucalyptus), application of fertilizers and biocides for growth control, and the construction and maintenance of road networks to access plantations. Harvesting operations extract the wood, which is then transported to mills. Ensuring sustainability and traceability of wood sources through forest certification is also a key activity for major players.

Pulp Production: Activities begin with receiving wood, followed by debarking and chipping. The core activity is the pulping process, predominantly the Kraft process in Chile, which chemically breaks down wood to liberate cellulose fibers. This involves cooking wood chips in a solution of chemicals (white liquor) under high temperature and pressure. Subsequent steps can include bleaching the pulp to achieve desired brightness and then drying and baling the pulp for sale or further processing. Pulp mills often generate their own energy, including from biomass residues.

Paper Manufacturing: Pulp is mixed with water and other additives in the stock preparation area. This prepared stock is then fed onto a paper machine, where water is drained, and fibers are formed into a wet web. The web passes through presses to remove more water and then through heated dryers. Finishing processes like calendering smooth the surface, and the paper is wound into large rolls. Different paper grades require variations in pulp type, additives, and machine settings.

Converting: This segment takes large rolls of paper or paperboard and transforms them into usable products. Activities include precise cutting, slitting, folding, gluing, and printing. Examples include manufacturing corrugated boxes, paper bags, envelopes, and converting large tissue rolls into smaller consumer products like toilet paper and paper towels.

Distribution: Activities encompass managing the logistics of transporting raw materials to mills and finished products to customers, both domestically and internationally. This involves warehousing, inventory management, and coordinating shipments via various modes of transport, including sea freight for exports. Sales and marketing efforts are crucial for reaching target markets.

Recycling: This involves the systematic collection of waste paper from industrial, commercial, and residential sources. The collected paper is then sorted by grade and baled for transport to recycling facilities or paper mills. Recycling processes include repulping the paper in water, removing contaminants (deinking), and sometimes bleaching to produce recycled pulp that can be used alone or mixed with virgin pulp to make new paper products.

List examples of key players with detailed profiles.¶

Empresas CMPC S.A.: A major Chilean integrated forestry company with significant operations in pulp, paper, tissue, and packaging. CMPC operates pulp mills in Chile (Laja, Pacifico, Santa Fe) and Brazil (Guaíba), with a total pulp production capacity of 4.2 million tons per year across these four mills. They produce various pulp types, including bleached and unbleached Kraft pulp from Radiata Pine and Eucalyptus. CMPC also manufactures different paper grades, including sack kraft paper and printing and writing papers, and has a strong presence in tissue and paper products through its Softys business unit. The company owns extensive forest plantations in Chile, Argentina, and Brazil, which supply its mills. CMPC is a global exporter with operations and sales in numerous countries. They are also involved in biomass energy generation.

Celulosa Arauco y Constitución S.A. (Arauco): Another dominant Chilean forestry and pulp and paper company. Arauco is one of the largest forestry companies globally based on plantation ownership and is a major producer of market pulp and wood products. They have pulp mills in Chile (Arauco, Constitución, Licancel, Nueva Aldea, Valdivia) and operations in several other countries. The MAPA project significantly increased pulp production capacity at their Arauco mill to an estimated 2,100,000 tons per year. Arauco produces various types of market pulp, including dissolving pulp. Their business also includes a substantial wood products division producing panels, sawn timber, plywood, and remanufactured wood products. Arauco manages large areas of forest plantations in Chile and other South American countries. They are also involved in energy generation from renewable sources.

Masisa S.A.: While also a significant player in the broader wood products industry, Masisa is noted as one of the three main business groups controlling the forestry industry in Chile, alongside Arauco and CMPC. Their focus is primarily on wooden boards for furniture and interior spaces, but they also have forestry operations. [See provided key players table]

Empresas Coipsa: A Chilean group involved in the industrial sector, including the production of containerboard and packaging systems. Through its subsidiary Unipapel, Coipsa converted a former newsprint mill to produce lightweight containerboard using recovered paper and mechanical pulp, with a production capacity of 120,000 tonnes per year. Another subsidiary, Compañía Papelera Pacífico (CPP), contributes an additional 80,000 tonnes, bringing the group's total containerboard capacity to 200,000 tonnes per year.

Other Players in Specific Segments: * Converting and Distribution: Companies like InterlogChile act as commercial and logistics partners in the Latin American paper industry, handling products like Kraft paper, coreboard, and cardboard. * Suppliers: Companies such as ANDRITZ Chile Ltda. provide equipment and services for the pulp and paper industry, including machinery for pulp and paper production and environmental solutions. * Recycling: While specific dedicated recycling companies focusing solely on paper are not detailed, companies like Empresas Coipsa utilize recovered paper in their manufacturing processes. There are also suppliers of recovered paper like InterlogChile. * Manufacturers/Suppliers of various paper types: Ametro Sarl is mentioned as a manufacturer, supplier, and exporter of various papers in Chile, including A4, copy paper, and thermal paper. PaperIndex lists various paper industry suppliers and exporters in Chile, including converters, printers, wholesalers, dealers, and trading companies like Industrias Kypco Spa, Fabal S.A., SoftPaper SpA, Asia Link Chile, and Medovic Y Cia Ltda.

Show estimates of volumes and sizes of each step in the value chain.¶

Estimates of volumes and sizes are primarily available for the pulp production stage and forest plantation areas, mainly for the major players.

Forestry: * Chile has approximately 2.3 million hectares of planted forests, mainly Pine and Eucalyptus, which provide about 99% of the wood extracted in the country. * Arauco has forestry assets of around 1.8 million hectares in Chile, Argentina, Brazil, and Uruguay combined as of December 2023. [See provided key players table] * CMPC owns forest assets totaling over 1.1 million hectares in Argentina, Brazil, and Chile as of 2019. [See provided key players table] CMPC specifically has 472,000 hectares of planted forests in Chile. * Arauco and CMPC together owned 1,715,910 hectares of tree plantations in Chile as of 2007.

Pulp Production: * Chile accounts for around 6% of global wood pulp output. * Chile is specialized in chemical pulp and has eight chemical cellulose production plants using the Kraft process. * CMPC has a total pulp production capacity of 4.2 million tons per year across its four mills (three in Chile, one in Brazil). Their Chilean mills (Laja, Pacifico, Santa Fe) have a combined capacity of 2.294 million tons per year. Santa Fe is CMPC's largest pulp mill in Chile with a capacity of 1.496 million ADt/year. Laja has a capacity of 293,000 Adt/year of pulp. Pacifico has a capacity of 525,000 Adt/year of pulp. * Arauco's pulp production was 3.8 million tons in 2023, with estimates of 4.7 million tons in 2024 and 4.8 million tons in 2025-2026. [See provided key players table] The MAPA project increased the capacity of the Arauco mill to an estimated 2,100,000 tons per year. Arauco reported that it owns seven pulp mills (globally, locations not specified for all). * In 2022, Arauco's dissolving pulp production reached 272 thousand tons, with a market share of 5.2%. * Chile's pulp production capacity was projected to increase by 1.5 million tonnes based on sustainable annual felling projections around the beginning of the 21st century.

Paper Manufacturing: * Chile is the fourth largest paper producer in Latin America with a 6% market share, in a market of about 24.5 million FMT (Fluid Market Tones). * Empresas Coipsa, through its subsidiaries Unipapel and Compañía Papelera Pacífico (CPP), has a combined containerboard production capacity of 200,000 tonnes per year. Unipapel has a capacity of 120,000 tonnes, and CPP produces 80,000 tonnes. * CMPC's Laja mill in Chile has a paper production capacity of 67,000 tons per year. * Brazil's total paper production capacity was 14 million tons in the first half of 2024, with major producers including CMPC.

Converting: * Volumes for converting are less specifically detailed for the entire segment in the provided information, but relate to the volumes of paper and paperboard produced and distributed. Companies like Empresas Coipsa have a containerboard capacity of 200,000 tonnes per year which is then converted into packaging systems.

Distribution: * Chilean forestry exports, which include pulp and paper, had China as the biggest market (14.4%) and the U.S. as the second largest (13.3%) in the year prior to 2015. Some 83% of CMPC's Chilean pulp production was exported in 2015, mainly to Asia, America, and Europe.

Recycling: * Volumes of recovered paper used in Chile are not precisely quantified in the provided sources, but its use in containerboard production by companies like Empresas Coipsa is mentioned. InterlogChile supplies white recovered paper of Chilean origin.

Value Chain Summary Table¶

Value Chain Step	Main Activities	Segments	Types of Players	Examples of Main Activities by Key Players	Volume/Size Estimates
Forestry	Plantation establishment, management, harvesting, road construction, certification.	Plantation Management, Harvesting, Forest Certification.	Large integrated companies, independent owners, government agencies, certification bodies.	CMPC and Arauco manage extensive plantations (CMPC: >1.1M ha, Arauco: ~1.8M ha) [9, 14, See key players table]; Harvesting and transport to mills.	~2.3 million hectares of planted forests in Chile; CMPC: 472,000 ha in Chile; Arauco: ~1.8M ha total [See key players table].
Pulp Production	Wood reception/prep, pulping (Kraft), bleaching, drying, baling, energy generation.	Wood Reception/Preparation, Pulping Process, Bleaching, Drying/Baling, Energy Generation.	Pulp mill operators, chemical/equipment suppliers, energy providers.	CMPC operates 3 pulp mills in Chile; Arauco operates pulp mills in Chile; Kraft process is dominant; Biomass energy generation by CMPC.	Chile: ~6% of global output, 8 chemical pulp plants; CMPC: 4.2M tons/year total capacity, 2.294M tons/year in Chile; Arauco: 3.8M tons (2023), est. 4.7M tons (2024), 4.8M tons (2025-26) [See key players table], MAPA adds 2.1M tons/year.
Paper Manufacturing	Stock preparation, paper machine operation, finishing.	Stock Preparation, Papermaking, Finishing.	Integrated companies, specialized paper mills.	CMPC produces paper at its Laja mill; Empresas Coipsa/Unipapel produce containerboard.	Chile: 4th largest producer in LatAm, 6% market share (~1.47 million FMT based on LatAm market of 24.5M FMT); Empresas Coipsa/Unipapel/CPP: 200,000 tonnes/year containerboard; CMPC Laja: 67,000 tons/year paper.
Converting	Cutting, shaping, printing, folding, assembly.	Converting Operations, Packaging Production, Printing.	Converting companies, packaging manufacturers, printers.	Empresas Coipsa produces packaging systems from containerboard.	Volumes linked to paper/paperboard production; Empresas Coipsa/Unipapel/CPP: 200,000 tonnes/year containerboard converted.
Distribution	Logistics, transportation, sales, marketing, export/import.	Logistics, Sales & Marketing, Trade.	Company divisions, logistics providers, wholesalers, trading companies.	CMPC exports 83% of Chilean pulp production; Arauco and CMPC export globally [See key players table, 21].	Exports significant volumes of pulp and paper; China and U.S. are major destinations; 83% of CMPC's Chilean pulp exported.
Recycling	Collection, sorting, baling, deinking, repulping.	Collection, Processing, Fiber Preparation.	Waste management, recycling facilities, paper manufacturers using recycled fiber, suppliers of recovered paper.	Empresas Coipsa uses recovered paper for containerboard; InterlogChile supplies recovered paper.	Volumes not precisely quantified for the whole segment; Empresas Coipsa uses recovered paper for 200,000 tonnes/year containerboard production.

Examples of Main Players¶

Empresas CMPC S.A.: * Profile: Established in 1920, CMPC is a vertically integrated company with significant forest assets and operations spanning pulp, paper, tissue (Softys), and biopackaging. It is one of the two largest players in the Chilean pulp and paper industry. CMPC operates multiple mills in Chile and Brazil and has a global sales presence. * Case Study Snippet: CMPC is investing in expanding its production capacity, such as the planned increase at its Guaíba mill in Brazil by 350 thousand tons. They are also noted for their sustainability efforts and have biomass power plants fueling their pulp mills. The company has faced challenges including elevated energy costs and competition. [See provided key players table]

Celulosa Arauco y Constitución S.A. (Arauco): * Profile: Founded in 1979, Arauco is a leading forestry company with extensive plantations and a major producer of market pulp and a wide range of wood products. [See provided key players table, 35] Part of the Angelini Group, Arauco operates globally with a significant presence in South America. [See provided key players table] They are a dominant force in the Chilean pulp and paper sector alongside CMPC. * Case Study Snippet: Arauco's recent MAPA project in Chile significantly boosted their pulp production capacity, reaching an estimated 2,100,000 tons per year at the Arauco mill. The company is also innovative, producing dissolving pulp and developing wood-based construction systems. Sustainability is a key focus, with commitments to environmental goals and utilization of certified forests. [See provided key players table, 10, 12, 24]

Empresas Coipsa: * Profile: A Chilean industrial group with over 50 years of experience in manufacturing containerboard and packaging systems. They operate through several companies and follow a circular economy model. * Case Study Snippet: Empresas Coipsa acquired a former newsprint mill and converted it through its subsidiary Unipapel to produce lightweight containerboard using recycled paper and mechanical pulp, demonstrating an adaptation to market needs and a focus on utilizing recycled materials. Their combined capacity for containerboard with subsidiary CPP is 200,000 tonnes per year, targeting the corrugated and packaging industry in Latin America.

Volumes and Sizes¶

Estimates of volumes and sizes in the Chilean pulp and paper industry are primarily driven by the production capacities and activities of the major players like CMPC and Arauco.

Forest Plantations: Chile has approximately 2.3 million hectares of planted forests. CMPC has 472,000 hectares in Chile, while Arauco's total forestry assets across several countries are around 1.8 million hectares. [9, See provided key players table]
Pulp Production: Chile is a significant global pulp producer, accounting for about 6% of world output. The country has a total of eight chemical pulp production plants.
- CMPC's total pulp capacity (Chile and Brazil) is 4.2 million tons per year. Their Chilean mills contribute 2.294 million tons per year to this capacity.
- Arauco's pulp production was 3.8 million tons in 2023 and is estimated to reach 4.7 million tons in 2024 and 4.8 million tons in 2025-2026, reflecting the impact of the MAPA project which added 2.1 million tons per year of capacity at the Arauco mill. [See provided key players table, 13, 25]
Paper Production: Chile is the fourth largest paper producer in Latin America with a 6% market share.
- Empresas Coipsa has a combined capacity of 200,000 tonnes per year for containerboard production.
- CMPC's Laja mill has a paper production capacity of 67,000 tons per year.
Dissolving Pulp: Arauco produced 272 thousand tons of dissolving pulp in 2022, holding a 5.2% market share for this specific product.

Reliable market share data for the entire Chilean pulp and paper market across all segments for 2024-2025 is not comprehensively available in the provided sources, but CMPC and Arauco are clearly the dominant players in forestry and pulp production, and significantly in paper and wood products.

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