updated Mar/2009

 

RANKING

The largest companies in the PULP & PAPER, according to the annual Best and Biggest Examination 2008 are Suzano, Klabin, VCP, Aracruz, International Paper, SP, Ripasa Cenibra Santher, Rigesa and Veracel.

The largest companies in market leadership won in sales are Suzano, Klabin, VCP, Aracruz, International Paper, SP, Ripasa Cenibra Santher, Rigesa and Veracel.

MARKET ENVIRONMENT

 

The Brazilian Pulp and Paper is still incipient, by global standards. As an example, the multinational International Paper has a capacity comparable to that of the Brazilian industry and all earned, in 2007, $ 22 billion - nearly ten times more than Suzano, our market leader.

That is why the Brazilian Pulp and Paper has been rehearsing a wave of acquisitions to gain size and competitiveness in the global market. In 2007, a great movement of the sector was the approval of CADE - Administrative Council for Economic Defense - the purchase by Suzano, 50% of Ripasa paper manufacturer, acquired in 2005 in partnership with the VCP, Votorantim Group.   Since 2008, VCP, Aracruz attempts to acquire, to create the world's largest manufacturer of pulp and hardwood. After two attempts, Votorantim will pay R $ 2.710 billion for 28% of Aracruz shares belonging to Arapar, which were in the hands of families Lorentzen, Moreira Salles and Almeida Braga. The same amount should be paid also by the actions of Arainvest, the Safra group. In the first negotiation, the Safra remain as a shareholder of the new company. Now the expectation is that the group wants to go out of business.

Sector companies also are seeking to internationalize their activities. Suzano, which in 2007 exported 80% of its pulp production, is expanding its presence overseas by opening offices in China, Argentina and the United States.

With respect to the global crisis, the sector should feel a little its effects, especially in the 1st half of 2009. Klabin, the largest producer of paper and packaging in Latin America and isolated leader in sales in Brazil, will suffer less from the crisis because it is more prevalent in the market and benefits from the warming of the packaging sector, scheduled for the 1st half of 2009 . The company sells part of its production to other countries, but exports of cardboard, for example, began a little over three years.

As for future investments in the sector, according to Bracelpa - Brazilian Association of Pulp and Paper, the industry will not cancel planned investments, which has focused in 2015. The focus is to invest in Brazil to overcome China's pulp production (19.070 million tons) in the coming years. The sector will invest $ 11 billion by 2011 and from 2012 to 2015 will invest U.S. $ 10 billion. In late 2012, Bracelpa projects that Brazil reached 17 million tons of pulp capacity.

 

Source: Review of Best Top 2008, Analysis Schwabb, InvestNews, Exam Portal, Blogbar of Fontana.