Business · Companies · 6 hrs ago
CMPC advances $4.5 billion pulp mill project in southern Brazil
CMPC is planning a $4.5 billion pulp mill in Barra do Ribeiro, in Brazil’s Rio Grande do Sul state.
The proposed factory is expected to produce about 2.7 million tonnes of pulp a year, more than the company’s existing mill in Guaíba.
The company expects 12,000 construction jobs and 5,000 direct operating jobs if the project goes ahead.
A port terminal is also planned to bring in wood and ship pulp to the Port of Rio Grande; authorities have authorized its implementation.
The project is still awaiting a preliminary environmental licence, which assesses whether it is environmentally viable.
Federal prosecutors challenge the scope of the company’s studies and say Indigenous, quilombola and fishing communities potentially affected by the project’s logistics were not properly consulted.
The legal action seeks revised studies, and the licensing process faces questions about potential impacts including water use.
CMPC is advancing a $4.5 billion pulp mill project in Barra do Ribeiro, in Brazil’s Rio Grande do Sul state.
The planned factory would produce about 2.7 million tonnes of pulp a year on a 10,000-hectare site.
The company expects the project to create 12,000 construction jobs and 5,000 direct operating jobs.
The project also includes a port terminal, but environmental licensing faces legal challenges over the scope of studies and consultation with potentially affected communities.
- Who
- Chilean company CMPC is developing the project.
- What
- A new pulp mill and port terminal, with planned annual production of about 2.7 million tonnes of pulp.
- When
- The article was published on October 16, 2026; it does not state when construction will begin.
- Where
- Barra do Ribeiro, in Rio Grande do Sul, southern Brazil.
- Why
- The project is intended to produce pulp and includes a terminal to bring in wood and ship the finished pulp.
CMPC
Federal Public Prosecutor’s Office
Environmental impact
CMPC
CMPC says the new mill will be far from residential areas, reducing its impact on nearby communities during operation.
Federal Public Prosecutor’s Office
The Federal Public Prosecutor’s Office questions the scope of the company’s studies and says potentially affected communities were not adequately consulted.
Licensing
CMPC
CMPC is preparing the site and working on plans to qualify and hire local suppliers.
Federal Public Prosecutor’s Office
The office recommended suspending licensing until affected communities had been heard and seeks revised studies.
The Rio Grande do Sul government signed a protocol of intentions with CMPC to provide institutional support.
CMPC signed a federal contract to operate the port terminal at a ceremony attended by President Luiz Inácio Lula da Silva.
The Federal Public Prosecutor’s Office recommended suspending the licensing process until potentially affected communities had been heard.
A Chinese delegation visited CMPC and heard a presentation about the project.
- Investment
- US$4.5 billion, or about R$27 billion
- Location
- Barra do Ribeiro, 60 km from Porto Alegre
- Site
- 10,000 hectares at Fazenda Barba Negra
- Planned production
- About 2.7 million tonnes of pulp per year
- Expected jobs
- 12,000 during construction; 5,000 direct jobs in operation
- Port terminal
- Planned capacity to handle about 5 million tonnes of pulp per year
1 source
What people are saying
It is the largest international expansion Chile has ever made in the world
It will be a completely new factory, designed with cutting-edge technology, in a project that will make intensive use of artificial intelligence and robotics in its operations
Unlike the current Guaíba unit, which, with urban growth, ended up in the middle of the city, the new factory will be located very far from any residential area or family