Focus on South America: Brazil | 41
imilar to many other emerging nations, the war with Iran and the associated restriction of the Strait of Hormuz led to substantial cost growth for Brazil’s major wood-based panels producers. Ongoing multiple geo-political and
S
Harvesting of raw materials by workers at Eucatex
economic tensions had seen Brazil just recovering from the serious challenges associated with the increased import tariffs initiated by the US Government. The continuing uncertainty poses a threat for the existing plans of some major local producers to further expand their business within the next several years, particularly in the segment of MDF.
At present MDF remains the most promising segment of the entire Brazil panels’ sector, which is attracting interest from investors.
One of them is Greenplac MDF, which is
investing about R$50m in the expansion of its capacities this year. Last year the company already invested about R$70m in its development in the domestic market, paying a particular focus in the segment of premium and higher value- added products. José Roberto Colnaghi, Chairman of
Colpar Brasil - the holding company that controls Greenplac - recently spoke about the company’s expansion plans. “Our investments in our Brazilian businesses are consistent, and we will maintain our focus on the secure growth of the brands in their respective areas of operation,” he told Brazilian media. “For us, the future of Greenplac MDF and
the company’s current positioning in its segment is positive and promising.” The company will launch new MDF capacities at the Água Clara (MS) plant. Most of the equipment will be supplied from Germany.
The capacity of the factory will increase
to 20,000m³ per month, allowing for new commercial strategies and product development, according to Valmir de Souza, Executive Director of Holding Colpar Brasil. In fact, Greenplac, already invested over R$1bn in its expansion between 2018 and 2022. At present the annual investments of the company in its development are estimated at R$70m. In the meantime, in contrast to Greenplac, the situation around Dexco, another major local MDF player, is much more complex. This is partly due to the consequences of the Middle East war and other negative factors, which has led the company to make efficiencies in its local business this year. This year Dexco also faced a slowdown in
the construction materials market of Brazil and high interest rates. The current high energy prices also put serious pressure on its business. Dexco is reducing its debts by selling
forestry assets, including those used in the production of its panels and non-core assets. Similar to other major players a priority is given for the manufacture of products with higher added value and higher margins. Last year it announced the sale of 1.2 million cubic meters of forestry assets – financial details of the deal were not disclosed. Dexco’s president Raul Guaragna recently said at a press conference that the company is undergoing a period of transformation. “We recognize the need to accelerate
internal adjustments: reducing complexity, addressing idle capacity, and improving execution in critical areas, from go-to-market (sales actions) to industrial efficiency, including factory development and productivity capture,” he commented. Mr Guaragna described the company’s financial indicators as “below its potential”. At the same time Guararapes Painéis - another major local player - also fears that complex economics and geopolitics may complicate implementation of its earlier announced ambitious plans to increase its net revenue up to R$3bn within the next several years and to conduct a massive IPO. During the period of 2023-2024 Guararapes Painéis, a company, which is based in the Santa Catarina state, completed a massive expansion of its MDF capacities at the industrial complex in Caçador. As part of the project, the German company Siempelkamp was contracted to implement the new line, in addition to other European suppliers such as Vyncke, Wemhöener, Valmet and Schrader. That allowed the company to become one of the largest MDF producers not only in Brazil, but on global scale. That required investments of more than R$1bn and resulted in the growth of net revenue of the company of more than R$2bn. As a result of that expansion the company, which was founded as a small lumber mill in 1984 by João Carlos Pedroso (father of the current CEO) and Valderez Bertolin, practically doubled its production capacity. Currently the overall MDF capacity of the
company is estimated at about 1.2 million m³ per year. Since 2016, the company already expanded its capacities from 200,000m³ to 600,000m³ per year. Today, the company exports its MDF
to more than 50 countries, and 40% of its revenue comes from abroad. Prior to 2025 the bulk of its exports were to the US, however the recent tariff complications are making many players consider diversification of export markets. The existing factories of the company are equipped with modern technologies, such as a closed-circuit evaporator that receives raw effluent, separates the solid content from the liquid, and allows the condensed material to be reused in the industrial process.
www.wbpionline.com | Summer 2026 | WBPI
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