"Chile's forestry exports are expected to increase to $5.75 billion this year, up 6.8% from the $5.39 billion exported in 2012, industry trade group Corma said Monday.
An increase in pulp production would partly boost total forestry exports, Corma said in a statement.
Pulp prices, however, could fall after new plants in Brazil and Uruguay increase supply from South America, said Corma President Fernando Raga.
In Chile, fuel and forestry conglomerate Empresas Copec SA (COPEC.SN) plans to start operations at its $1.9 billion Montes del Plata mill in Uruguay during the first half of this year. Montes del Plata, a joint-venture between Copec and Finnish paper producer Stora Enso Oyj (STERV.HE), expects to add 1.3 million metric tons of hardwood pulp a year.
Chilean paper and wood-pulp producer Empresas CMPC SA (CMPC.SN), meanwhile, has a $2.1 billion investment planned for the expansion of its Guaiba plant in Brazil.
Once Guaiba is fully operational in 2015, CMPC will increase total pulp production by 46% to around 4.1 billion metric tons a year.
In addition to being one of the largest exporters of wood pulp, Chile also exports sawn timber, wood panels and other processed-wood products".
Source: WSJ
