CMPC wants to become a leader in the Latin American market of tissue paper

New ares are blowing in CMPC. The company controlled by the Matte family is once again making significant changes in your internal structure, but now thinking about how to face a new future, far from the noise and damage to the reputation that the case caused by the cartel case of tissue in Chile. The company wants to strengthen other areas of business, other than the traditional tissue and market pulp, to take advantage of the good results that the forest sector is showing and also to bet on opening new markets. Currently, the CMPC is finishing the first half with historic results, driven by good price that is registering the cellulose, coffee that is reaching record levels, and also because all industrial plants belonging to the Group of cellulose are reaching your maximum operation, which includes the brazilian subsidiary Guaíba, the jewel of the holding. Along with this, the company is having a good reputation performance, being included in the Dow Jones Sustainability Index 2018, one of the main indicators of Wall Street. In addition, the forest action reached on Thursday, a new all-time high, causing your stock market valuation in excess of $ $10 billion. And this is the good streak that the Council members decided to analyze each business group, in order to take advantage of the good results expected for this period. New air although the internal analysis is still ongoing, a thing that the members of the Board of paper have made it clear they want to revitalize the wood business, an area that was a little bit forgotten after the expansion and optimization in the year 2012 , an installation that there is still an expectation to achieve expected production levels. "This year was made an assessment to determine whether or not it was advantageous for the company to continue investing in wood and concluded that Yes. Now, a more detailed strategy is being defined, but there should also be new developments soon, "said an Executive close to the holding company. The criterion that prevailed, says the source, is to make the best use of the pine, the tree that is used, among other things, for veneered panels. And the conclusion is that it seems more convenient to use part of the pine for this business than use it completely to make pulp, emphasizes the source. But the market already knew about the new CMPC's intentions. The message was delivered by the new General Manager, Francisco Ruiz-Tagle, in the company's investor day last August, a few days after taking your new responsibility in holding. The former pulp business will be in charge of the new ares that the Council wants to CMPC, a momentum that we've seen it in April of last year, with the change of image of the company and which was announced at the annual meeting of shareholders of the company. The days of Ruiz Tagle were intense. The commercial engineer at the University of Chile and your team are committed to the modernization of the company and one of the ways is to open new markets to take advantage of the opportunities offered, for example, electronic commerce. And for that, they signed this year for Christopher Irarrázabal, Tottus, assuming executive general management subsidiary of company that should grow thanks to e-commerce. "Here you are looking at all possible business, because what you want is to enter this market with everything," says one knowledgeable of the tasks of the new Executive. One of the things that are being reviewed internally at Laja conversion plant is intended to make it possible to produce corrugated paper bags, agenda which is still in process for inclusion within the company. Latam leaders But the traditional business is also on the CMPC's growth program, where the protagonist's tissue business, where the company has an ambitious commitment. The Group's goal in this business is clear: they want to be the leaders of Latin America, a small challenge, considering the role they play in Mexico, where they have a market share of 11%, and Brazil, which have 8%. For that, you want to increase market share in both countries in order to reach 17% and market share of 18%, mainly financed through mergers, acquisitions and organic growth, the group said. A few weeks ago, the company made a change in the subsidiary connected to the "soft part". This is the creation of CMPC Tissue management, under the responsibility of Gonzalo Darraidou, which, for your time, will be in charge of the management of Chile – by Patricio Arenas-, Brazil and Mexico, which gave relevance, now they will have a unique Manager will report directly to Darraidou and second to CMPC Tissue directory. Added to that, a few days ago, Peter Urrechaga, former General of CMPC Tissue Brazil, as new CEO of CMPC Tissue in the South Cone. Urrechaga will be responsible for the operations of Argentina, Colombia, Peru, Ecuador and Uruguay. "To grow, we had to give more independence to this business. In addition, this is the business of the CMPC, you need a different administration, "says an executive paper bound. Brazil: preparing the ground But the tissue isn't the only area in which the directory of the company wants to grow. The same is also being done in the pulp business, where the country for natural growth of the CMPC is Brazil. In fact, this was one of the last messages that the former General for holding, Hernán Rodríguez, sent to the market last May. In this occasion, Rodriguez indicated that the growth potential in this market will not be held before "five or seven years from now." That's because the company needs to build a forest mass to supply a new plant. And that's where the company is focusing. Today, the slogan within the company is that CMPC's "vitrineando" the country of samba farms, looking for lands further south where currently operate the plant of Guaíba, Rio Grande do Sul. "The CMPC is preparing for future growth of pulp in Brazil", stand out in the market. In addition, there is a good reason to believe that the demand for pulp will remain healthy in the years to come ". At the time, also highlighted have not any rush, because in your presentation pointed out that the market is waiting for the contribution that Arauco pulp market will in the future, with the entry of the first phase of the Map, scheduled for 2021.