SWEDISH-BRAZILIAN CHAMBER OF COMMERCE Fact Pack Pulp & Paper sector in Brazil Swedish Trade Council Brazil April, 2005.

SWEDISH-BRAZILIAN CHAMBER OF COMMERCESWEDISH-BRAZILIAN CHAMBER OF COMMERCE

Fact Pack

Pulp & Paper sector in Brazil

Swedish Trade Council Brazil

April, 2005

• Rio de Janeiro

• Porto Alegre

• Curitiba• São Paulo

• Belo Horizonte

• Recife

• Fortaleza• Belém

• Manaus

• Brasilia

Brazil – Basic FactsBrazil – Basic Facts

Political system: President:

States:Largest cities:

Exchange rates: (Jan2005)

Life expectancy:Urbanization:

DemocracyLuis Inácio Lula da Silva26: Brasília (capital), São Paulo, Rio de Janeiro, Curitiba, Porto Alegre, Belo HorizonteUSD 1.00 = R$ 2.90SEK 1.00 = R$ 0.3867.6 years82%

Brazil - 8 500 000 Km2

- 5th largest country in the world in area (19 times larger than Sweden)

- 180 million inhabitants (5th after China, India, USA and Indonesia)

- 40 million consumers with Swedish purchasing power or stronger

- 47% of total GDP in South-America

- The Swedish-Brazilian companies invested over USD 3.3 billion over

the last five years and plan investments for the coming five-year

period of more than USD 3.1 billion

Market Overview - BrazilMarket Overview - Brazil

Source: BRACELPA (Brazilian Association of Pulp and Paper)Estimate: Bracelpa Preliminary Report 2004

• 220 pulp & paper production units - located in 16 federal states

• The sector employs around 100 000 persons

• Pulp production increased 3,6% last year

• Brazil is the 7th largest pulp producer in the world: 9.4 million tons in 2004

• Brazil is the largest global producer and exporter of eucalyptus pulp

• The industry exported pulp and paper at a value of 3.1 billion USD and imported for 0.6

billion USD in 2004

• The industry uses only planted raw material: eucalyptus and pine

• 1.5 million hectares of planted forest - and the same area of preserved forest

• 3 million tons of paper are recycled per year

• 220 pulp & paper production units - located in 16 federal states

• The sector employs around 100 000 persons

• Pulp production increased 3,6% last year

• Brazil is the 7th largest pulp producer in the world: 9.4 million tons in 2004

• Brazil is the largest global producer and exporter of eucalyptus pulp

• The industry exported pulp and paper at a value of 3.1 billion USD and imported for 0.6

billion USD in 2004

• The industry uses only planted raw material: eucalyptus and pine

• 1.5 million hectares of planted forest - and the same area of preserved forest

• 3 million tons of paper are recycled per year

Numbers in 1000 (T)

The paper production estimate is more than 8.0 million tons in 2004

Source: BRACELPA (Brazilian Association of Pulp and Paper)Estimate: Bracelpa Preliminary Report 2004

0

2

4

6

8

102001 2002

74387774

632 560

6720 6879

7900

5001368 1455 1650

6750

2003

Production Imports Exports Apparent Consumption

Consumption per capita 2003:

~ 38,2 kgConsumption per capita 2003:

~ 38,2 kg

Brazil’s pulp sector is strong and a growth of 3,6% is expected in 2004, reaching more than 9.3 million tons.

Numbers in 1000 (T)

0

2

4

6

8

102001 2002

Production Imports Exports Apparent Consumption

7412

8021

310 373

44684944

9000

380

3254 3450

4500 4880

2003

Source: BRACELPA (Brazilian Association of Pulp and Paper)Estimate: Bracelpa Preliminary Report 2004

SWEDISH-BRAZILIAN CHAMBER OF COMMERCESWEDISH-BRAZILIAN CHAMBER OF COMMERCE Source: BRACELPA (Brazilian Association of Pulp and Paper)

Sector Investment ProgramBrazilian Pulp & Paper

2003 - 2012

•Double the export of pulp

•Maintain the Brazilian share of the international paper market

•Fully supply the expanded domestic demand and reduce imports of paper

•Crucial condition: assurance of raw material supplies, and respecting environmental and social values

•Double the export of pulp

•Maintain the Brazilian share of the international paper market

•Fully supply the expanded domestic demand and reduce imports of paper

•Crucial condition: assurance of raw material supplies, and respecting environmental and social values

SWEDISH-BRAZILIAN CHAMBER OF COMMERCESWEDISH-BRAZILIAN CHAMBER OF COMMERCE Source: BRACELPA (Brazilian Association of Pulp and Paper)

Sector Investment ProgramBrazilian Pulp & Paper

2003 – 2012 (continued)

Total Investment 7.3 5.2 1.9 14.4

Trade Balance 21.5 8.9 - 30.4

Additional tax generation - - - 2.2

New job´s generated (1000) - - - 60.7

New projects/ Investment plans 7.4 2.2 1.6 11.2

Pulp Paper Wood TotalBillion USD