Friday, May 22, 2015

Demand for tissue leads to investments of r $ 1 billion until 2019

Firm growth prospects of the Brazilian demand for papers for sanitary purposes until the end of the Decade spurred another round of investments in productive capacity. With eight projects already announced and total investment of r $ 1 billion, the national production of "tissue" should be expanded to 400 thousand tons between 2015 and 2019. Last year, the volume produced in the country was of 1.09 million tons.
"Despite the crisis, the growth continues above the GDP [gross domestic Product] and, in addition to improving the income, there are issues intrinsic to the thread that will remain," said the Manager of economic studies of the Finnish consulting Pöyry, Manoel Neves. One of the phenomena of this scenario, which comprises the relatively low consumption of toilet paper in the country, the potential for expansion into other segments, such as towels and hospitality items, and improves the conditions of hygiene, is the installation of new machinery.
In addition to the announcements of new machines, five of them multinationals, there is an enlargement of capacity of machine that is already in operation. "It is undoubtedly the fastest growing segment in the world. But the gap opens even more opportunity in Brazil, "he said. In the country, per capita consumption of tissue revolves around 5 pounds per year, below Mexico (more than 8 pounds) and Chile (more than 9 pounds) and well away from developed markets, such as American, which reaches almost three times the volume in Brazil.
Recent survey of Pöyry, global reference to the pulp and paper industry, shows that the national production of this type of paper will grow at rates of 4% per annum until 2020, above the average of 3% per annum calculated between 2004 and 2014, stimulated by social mobility and improvement in health issues. The performance is also higher than the rate of expansion of global demand in the long run, estimated at just under 3 percent annually-rate that puts the main tissue paper industry's growth engine, above including the packaging.
The profile of the paper consumed by Brazilians also evolved, according to Pöyry. The income improvement has led consumers to replace the toilet paper of simple sheet by two-ply. In 2007, as Neves, the roles of two-ply corresponded to 15% of sales in the country. Between 2009 and 2012, however, while the premium lines grew at average rates of 17% per annum, the role of simple sheet showed expansion of only 1% per year.
Another change, related to geography, also influence the projects. Although the Southeast continue concentrating the main consumer market of tissue, the accelerated expansion of consumption in the Midwest and Northeast attract attention of manufacturers. Brazilian companies as Santher and Mili, for example, vie for market with the CMPC Improvements (Chilean group CMPC) and the American Kimberly-Clark.
In 2014, the total output of papers in Brazil reached 10.39 million tons, according to the Brazilian industry of trees (Ibá), and papers for sanitary purposes corresponded to 11% of this volume, or the equivalent to the third largest production by type of paper.
Valor Economico
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