Paper and Cellulose

Largest producer of eucalyptus in Brazil, the state of Bahia is a national reference in the production of pulp and paper, with one of the largest industrial pulp parks in the world.

OVERVIEW OF THE SECTOR

The paper, pulp and wood industry encompasses a very large variety of production chains, involving wood fibers – raw material for the paper industry, packaging, industrial filters, and plastics – for the manufacture of solid wood and reconstituted wood for the manufacture of furniture.

The strategy for the pulp and timber industry is to develop a new forest processing platform for the state, as there is untapped potential for the timber industry and this potential is being addressed in the design of a new logistics infrastructure, with the advent of the Ferrovia Oeste-leste and Porto Sul.

Combined, these modalities will open space to foment new poles of planting through industrial enterprises of forest base. The starting point is to establish a land supply for the sustainable planting of forests and an incentive policy for this chain. These are the assets that will leverage this industry in the coming years.

The pulp and paper industry is covered by the high productivity of eucalyptus and pine forests. Bahia appears in 4th place in the country in terms of the location of forest stands, with 671.3 thousand hectares planted, which represents 10.1% of the area planted with pine and eucalyptus in Brazil, according to data from Abaf (Associação Baiana de Empresas of Forest Base). It is also worth noting the industrial processes, which use state-of-the-art technology, which increases the sector’s competitiveness and its good performance in domestic and foreign markets.

Credit: Elói Corrêa / GOVBA


SECTOR DATA

According to the latest data released, the GDP of the Bahian forestry sector reached R $ 9.02 billion, up 6.5% compared to the previous year. As a result, the GDP of the Bahian forestry sector accounted for 5.4% of Bahia’s GDP.

> PRODUCTIVITY

Bahia has the highest Brazilian and world productivity in relation to eucalyptus plantations, higher than the Brazilian average and the average of other important forest-producing countries, mainly due to regional edaphic climatic conditions involving favorable soil and climate conditions and technology used in culture. The average yield of eucalyptus plantations in the country is 44 m³ / ha / year, and the state’s productivity reaches 65 m³ per ha / year. (Abaf, 2015)

In relation to the Certified Area, Bahia had 544 thousand hectares of certified plantations, which represented 81% of the total planted in the state. Thus, Bahia is the state that has the largest ratio between certified area and planted area in Brazil. The other states certified, on average, 60% of the forest plantations.

> CONSUMPTION
The balance between production and consumption indicates that for some products, such as paper, gear and wood pieces, furniture and panels, there are investment opportunities in the state of Bahia, since part of the consumption is supplied by companies from out of state. Bahia is one of the largest generators of jobs in the sector in the Northeast Region of Brazil, highlighting the great cities of the interior, which are responsible for maintaining employment outside urban centers.

> EXPORTS

In 2017, the pulp and paper segment was the second most important in Bahian exports with a 16.67% share. Also according to the SEI (Superintendence of Economic and Social Studies of Bahia), exports in this sector totaled US $ 382.8 million. During this period, China remained the largest market for Bahia’s pulp and paper exports.

In March 2018, according to data from the Superintendency of Economic and Social Studies of Bahia (SEI), the pulp and paper sector led the ranking of exports in Bahia reaching a growth of 5.5% in relation to the same period last year .

Crédito: Elói Corrêa / GOVBA

INVESTMENT OPPORTUNITIES
• Attractiveness of manufacturers to the implantation of paper mills and personal hygiene products, cellulose derivatives and other uses for wood;
• Attracting factories of machines and equipment for the sector;
• Consolidation of the production chain;
• Attraction of forest poles.

MAIN COMPANIES INSTALLED

WHERE THE SECTOR IS PRESENT

The main companies of the sector are installed in the Territory of the Extreme-South of Bahia. This activity covers 47 municipalities, generates more than 2,500 direct jobs and about 12,500 indirect ones.

Two municipalities, Eunápolis and Mucuri, in the south of the state, stand out in production and are headquarters of large companies in the segment – Veracel, located in Eunápolis, and Suzano, located in Mucuri. Considered one of the most advanced industries in the world in the sector, Veracel specializes in the production of pulp. Suzano, currently in expansion, produces in an integrated way (pulp and paper) and owns the largest pulp and paper production unit in Brazil.

See the map below where the sector is predominant in the state.