Emerging markets: Growing industries in Latin America 2019 (focused in the south pacific coast) 1 Responsible Regional Leadership and Profitable Results Source: Bracelpa, AFCP ,Barnet, SPC
Latin America the new reserve of sustainable energy of the world 2 49% of the world's lithium reserves are in Chile, Bolivia and Argentina " With all the solar energy potential of Chile, it could supply 60 times the consumption of the country and 20% of the world"
Amazing Natural Resources 3 Amazonas River, Galapagos island IguazúWater Falls, Pacific and Atlantic Oceans, The Patagonia & The Andes, Atacama desert
Amazing Natural Resources 4 Amazonas River, Galapagos island IguazúWater Falls, Pacific and Atlantic Oceans, The Patagonia & The Andes, Atacama desert
Did you know that 4 out of the New 8 Wonders of the World are in South America ? 5
Do you want to know why there is a growing market in Latin America? 6
Latin America is first or one of the largest producer of wine, fruits, vegetables, fish, shrimps, sea food, pigs, beef, lambs, nuts, etc. 7
8 Creative Resourceful Innovative Optimistic Practical Inclusive
The socio-political situation of Latin America 9
PIB(GDP) PPP, LATAM 2019 10 Source: Cepal
THE DISTRIBUTION OF THE POVERTY IN LATIN AMERICA 11
Which are the richest countries in Latin America and its evolution 12
Minimum wages in Latin America 13
The world economy and our industry will be driving through difficult roads so we will need now more than ever: 14 STRONG LEADERSHIP RESPONSIBLE DECISIONS CAUTIOUS ACTIONS HARD WORK WORLD CLASS TECHNOLOGY INFRAESTRUCTURE,LOGISTIC ISSUES Let’s carefully drive towards responsible and cautious decisions that can lead us to a healthy industry as it is in today’s Latin America
The containerboard industry has played a very important role in the development of Latin America’s fruits and seafood industry 15 L AT I N AM E R I C A I S F I R S T O R O N E O F T H E L AR G E S T P R O D U C E R O F : B AN A N A AN D O R G AN I C B AN A N A S AL M O N AN D T R O U T, T U N A F I S H , S R I M P S G R AP E S , AP P L E S , AV O C A D O S , C H E R RY, C R A N B E R R I E S , P O M E G R AN AT E S , F L O W E R S , V E G E TAB L E S AS AS PA R A G U S , A R T I C H O Q U E , P E P P E R , G AR L I C , AL L K I N D S O T M E E T S AS C O W S , P I G S AN D L AM B S W I N E S T H E P E N E T R AT I O N O F R E TA I L A N D L A R G E S U P E R M A R K E T C H A I N S , I N C R E A S E S T H E PA C K A G I N G C O N S U M P T I O N . I N T E R N E T S A L E S R E A C H E D $ 8 5 B I L L I O N U S D ( 2 0 1 9 ) , C O M P E T I N G W I T H T H E R E TA I L O R C O M P L E M E N T I N G . The boxes for these products are fabricated in plants with a high
IN SOME COUNTRIES HAVE TRANSPORT AND LOGISTIC PROBLEMS THAT DIFFER THE CONSTRUCTION OF WORLD CLASS PAPER MACHINES THERE ARE VIEW LOGISTIC ISSUES THAT HAS TO BE RESOLVED 16
Latin American Market in Figures 17 World consumption containerboard 190 Mtonne, 2019. 150Mtonne recycled 40 Mtonne virgin Latin America produces 5.8% of the world’s containerboard and consumes 8%, it´s a net importer. Growth of Containerboard in Latin America from 2010 until 2016 , 3.2 % 2016-2018, YEARS 2018– 2022
World Containerboard Supply: Virgin and Recycled The overwhelming majority of the Containerboard Paper supply is from Recycled Paper There has been Little to no growth in the supply of Virgin Containerboard paper The majority of VirginContainerboard comes from the US Most of Latin America’s paper imports come from the US
World Containerboard Industry Containerboard is the largest segment of the world paper & board demand All forecasts point to a continued, strong, & healthy growth in the industry
LATIN AMERICA Participation and Growth Average Increase in Consumption 2010- 2016 7% 6% 5% % GROWTH 4% 3% 2% 1% 0% Asia Western Eastern North Latin Africa Oceania All Europe Europe America America Others Latin American participation in the global containerboard market is relatively low (8%) However, it is one of the fastest growing markets
Latin America at a Glance 2019 21 All Others, 9,5 % Peru, 2% Ecuador, 6% Colombia, Brazil, 34% 5% Chile, 4,5 % Argentina, Mexico, 7% 32% Source: Cepal, IMF ,DbaseWEO
CHILEAN WINE , SALMON ,TROUT,SEA FOODS, PIGS, LAMB FRUITS AND NUTS 22 Chile is a 21.7% grape, global market and the biggest cranberry and cherry producer 5 out 100 fruit , that are consumed in USA are produced in Chile CHILE IS THE FOURTH LARGEST EXPORTER OF APPLES IN THE WORLD
Chile is a very vibrant and fast growing containerboard market. 60% of the market is for fruit boxes and 40% industrial. .Very strong market for Kraft Liner boxes. Due to the fruit, wine and salmon, pigs industries. Despite containerboard being produced locally by CMPC, there is a large quantity still imported from Canada, USA, Brazil and Europe. CHILE . •A strong healthy high-tech containerboard industry with a respectable and powerful leader. • Five companies have updated their plants with new WORLD CLASS 23 corrugators. •A new state-of-the-art WORLD CLASS paper mill with a new production in 2008 of 300,000 Metric tons will reduce in 100,000 tonne of imported paper. •A rebuilt newspaper machine to produce medium 100.000 tonne per year in 2010 •Industrial boxes are made with low gramage paper. Between 450 & 500 gsm (grams per square meter = g/m²) •The new kinds of fruits as berries and cherries use light weigth boxes too, with sophisticated printing Source: Barnet, SPC
24 CHILE •One strong respectable company shares 45% of the Market. •A total of 8 companies share the remaining balance of 55% •Chilean Market: Industrial 50% Fruits, Salmon and Wine 50% •Kraft Paper 30%, Recycled Paper 60%, WTL 10% •The Chilean Containerboard Industry is a role model for all the Latin American countries
ECUADOR( THE COUNTRY OF OPPORTUNITIES) , ECUADORIAN BANANAS,SHRIMPS, SEA FOODS,TUNA FISH,FLOWERS, ORGANIC CACAO,COFFE,AVOCADOS, MANGOS 25
• The fourth largest ECUADOR Population: 16.5 million consumption in corrugated paper in Latin America. Area: 272, 045 sq km • A country that makes Major language: Spanish more than 338 million banana boxes per Currency: USD year.(2019) 26 • Ecuador is the largest GDP: 194 billion. Kraft Liner importer in all of South America. • Due to the large fruit industry, Ecuador is a large consumer of White- Top
Ecuador Is the second largest tuna and shrimp, exporter in the world ECUADOR ships more than 5 million tonnes of bananas a year, to put it into perspective: Colombia, Costa Rica, Honduras, and 27 Guatemala each one ship around 1 million tons, provides 30% of the world’s banana supply. Ecuador is the third world exporter of flowers with 7% of the international market
28 Ecuador • 3 integrated strong respectable companies shares 75% of the Market. • A total of 1 non integrated company share the remaining balance of 25% Expansion:2010 up • - Surpapelcorp 120 k Future expansion 70k 2020 • SPC is a strong new incomer in the paper industry and leadership in the containerboard industry. • Banana Boxes 70%, Industrial Market 20% and Fruits & Sea Food 10%
PERU AN EMERGING FRUIT COUNTRY ,GRAPES, MANGO,ORGANIC BANANA,AVOCADOS,CRANBERRIES,ASPARAGUS, FRUITS AND VEGETABLES 29
• A strong healthy containerboard industry with a respectable and powerful leader. • Five companies have updated their plants with new corrugators. • There are not a new state-of-the-art paper mill • Industrial boxes are made with low grammage paper, between PERU 500 gsm to 650 (grams per square meter = g/m²) • Peru is the fastest growing containerboard market in Latin America. In the past 3 years the growth of containerboard has been in close to 9%, today close to 6 % 30 • 50% of the market is for fruit boxes and 50% industrial. • As is common in Latam except Brazil and Chile Peru have a lot of Small and old paper machines, for corrugated board production, there not are any world class paper machine • Big corrugated boxes companies with small corrugated plant with out of the actual standards trim • Perú is a member a APEC, agree a Free-Trade deal with both Canada and the U.S. and Euro community Source: Barnet, SPC
31 Peru • Expansion: • -Trupal S.A. 30K • One company has the leadership with 60% of the market. • Industrial Market 65%, Fruits & Sea Food 35% • Highly Integrated Companies
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