Brazil’s pulp and paper industry is an important economic sector
Brazil has approved a new investment plan to boost the local economy. The government plans to increase investment in strategic areas for the country. For example, the Brazil’s pulp and paper industry will see an increase in capital investment.
The government intends to invest R$105 billion in the sector’s development. The funding will be in tranches and will be in place until 2028. According to the plan, the investments will create around 36,000 new jobs. This figure refers only to the period of construction of new industrial facilities. Once the companies are fully operational, they will employ a further 7,300 skilled workers. In addition, the investments will stimulate the economic development of some areas of the country.
It is worth noting that the pulp and paper industry is essential for Brazil. According to the responsible minister, the industry is one of the main drivers of economic growth. It has a leading position in the world market, strengthening the country’s position as a major supplier of products. Paper production plays a vital role in filling the budget. Its exports account for a significant share of total foreign earnings.
Overview of other investments
The oil and gas industry is another important sector for Brazil. In 2023, the government allocated R$10 billion for the development of this sector. Besides production, the funds will also go towards the new field exploration and the start of work on existing fields. The strategy for developing the industry includes:
– for the period 2024-2027, the plan is to raise R$18 billion;
– investments in 2025 will be around R$8 billion;
– investments in 2026-2027 will be R$701 million.
Brazil’s government notes that more than R$9 billion of this amount will be used to develop offshore fields, the drilling sector will receive R$8.5 billion, and R$470 million will be invested in the extraction of raw materials from onshore deposits.
The first steps in this direction have already been taken. We are talking about contracts with production service providers. The latter has been assigned the areas where oil and gas exploration and production will take place. A total of 251 sites will be under contract by 2023, and 151 of these sites are in the North Sea. 151 of them are located on the sea shelf. This type of production is to be the most promising for Brazil. Investment in offshore exploration is growing steadily. This trend is not affected by developed countries’ goals to reduce the use of minerals. Moreover, the oil industry remains popular with investors.
