Stora Enso plans to expand in Brazil

This expansion will depend on whether the government eases legal and regulatory uncertainty for pulp and paper producers
Finland's Stora Enso Oyj, Europe's largest paper producer, may consider expanding in Brazil, depending on whether the government eases legal and regulatory uncertainty for pulp and paper producers, Business Insider reports.

Juan Carlos Bueno, executive vice president of biomaterials at Stora Enso, said that the growth of Veracel Celulose, owned by Stora Enso and Fibria, depends on how the government deals with issues such as landless peasants' activism or existing limits Ownership of foreign lands.

The Executive also stressed the importance of Latin America for Stora Enso's strategy of obtaining low-cost pulp from tree plantations. The Brazilian pulp and paper industry could potentially attract EUR 23 billion in investments by 2020.

These investments could help to double the Brazilian forest base, increase existing plants and build new ones. In Brazil, Veracel's average annual pulp production is 1.1 million tons.

CW Group - USA - 22 abril 2017