I/CN.12/294/Rtv.2 PROPIEDAD DE \k 111111» POSSIBILITIES FOR THE DEVELOPMENT OF THE PULP AND PAPER INDUSTRY IN LATIN AMERICA 1111' UNITED NATIONS POSSIBILITIES FOR THE DEVELOPMENT OF THE PULP AND PAPER INDUSTRY IN LATIN AMERICA A Joint Study by the Economic Commission for Latin America and the Food and Agriculture Organization of the United Nations UNITED NATIONS DEPARTMENT OF ECONOMIC AFFAIRS New York, 1954 E/CJNL12/294/Rev.2 November 1953 UNITED NATIONS PUBLICATION Sales No.: 1953. II.G. 2 Price: $U.S. 1.50; 11-stg.; Sw. fr. 6.00 (or equivalent in other currencies) LETTER OF TRANSMITTAL Santiago, Chile November 1953 Sir, The fourth session of the Economic Commission for Latin America at Mexico City adopted resolution 10 (IV) stating that, "in view of the importance of industrial studies to the economic development of Latin America, . studies should be carried out as soon as possible on the steel, wood-pulp and paper, basic chemicals . industries". In regard to the proposed study of the pulp and paper industry, the resolution indicated that the Secretariat should seek the collaboration of the Food and Agriculture Organization. Accordingly, after con- sultation with the Director-General of the Food and Agriculture Organization, a joint study was undertaken, having as its main object to determine: a) Present and future demand for paper and for chemical and mechanical pulp; b) The region's existing capacity to manufacture these products, and the present and future need for developing such capacity; c) The adequacy of potential raw material resources for maintaining the necessary development of the industry; and d) The manufacturing methods which can be adapted to Latin-American raw materials. The results of this study appear in the present report, a preliminary version of which was submitted to the fifth session of the Economic Commission for Latin America, held in Rio de Janeiro in April 1953. I have the honour to be, Sir, Yours faithfully, Raúl PREBISCH Executive Secretary Economic Commission for Latin America The Hon. Dag Hammarskjold Secretary-General United Nations New York iii TABLE OF CONTENTS CHAPTER I. LATIN AMERICA Page I. Introduction 1 II. The need to promote the development of the paper industry in Latin America 1 III. Technological possibilities for using the fibrous resources of Latin America in pulp and paper production 3 IV. Comparison of the needs for development in Latin America with the possibilities offered by its fibrous resources 6 V. General conclusions 6 CHAPTER 11. ARGENTINA I. Summary and conclusions 15 II. Productive capacity and consumption A. Productive capacity and consumption of paper 16 B. Productive capacity and consumption of chemical pulp for paper.... 17 C. Productive capacity and consumption of mechanical pulp 17 D. Productive capacity and consumption of dissolving pulp 17 III. Forest resources in Argentina for the future development of the paper industry • 17 IV. Domestic supply possibilities of fibrous raw material compared with future requirements of the chemical and mechanical pulp industries 19 A. Production of chemical pulp. 19 B. Production of mechanical pulp 20 V. Accessibility of resources and availability of other factors of production A. Misiones pine region 20 B. Paraná delta 21 C. Straw-producing region 21 D. Cane bagasse region 21 CHAPTER III. BRAZIL I. Summary and conclusions 30 II. Productive capacity and consumption A. Productive capacity and consumption of paper 32 B. Productive capacity and consumption of chemical pulp for paper.... 32 C. Productive capacity and consumption of mechanical pulp 32 D. Productive capacity and consumption of dissolving pulp 33 III. Development possibilities in the Paraná pine region A. General information on Paraná pine 33 B. Utilization of the natural forests of the State of Paraná 34 C. Future possibilities of the State of Paraná on the basis of pine plantations 35 D. Supply of non-fibrous raw materials in the State of Paraná. 36 E. Utilization of the natural forests of Santa Catarina 36 F. Utilization of the natural forests of Rio Grande do Sul 37 G. Possibilities of utilizing other forest species in Rio Grande do Sul... 37 iv Page IV. Development possibilities in Sao Paulo A. General information 38 B. Utilization of eucalyptus plantations in the Rio Claro zone 38 C. Utilization of eucalyptus plantations in the zone of the Rio Paraiba valley 39 D. Utilization of eucalyptus plantations in the Northern Zone 39 E. Supply of chemical raw materials 39 V. Development possibilities in the Amazon region 39 A. General problems 39 B. General classification of the Amazon territory 40 C. Possible alternatives in the utilization of resources 40 D. Utilization of the species found in "vdrzeas baixas" 40 E. Utilization of the terra firrne forests near substantial power resources 41 F. Utilization of the terra firme forests near the sea 42 CHAPTER IV. CENTRAL AMERICA I. General considerations 48 II. Resources of Costa Rica 48 III. Resources of Guatemala 49 IV. Resources of Honduras SO V. Resources of Nicaragua 50 CHAPTER V. CHILE I. Summary and conclusions 52 II. Productive capacity and consumption A. Productive capacity and consumption of paper 53 B. Productive capacity and consumption of chemical pulp for paper 53 C. Productive capacity and consumption of mechanical pulp 53 D. Productive capacity and consumption of dissolving pulp 53 III. Development possibilities based on Insignis pine 54 IV. Development possibilities based on pulpwood from natural forests 55 CHAPTER VI. COLOMBIA I. Productive capacity and consumption 62 II. Principal resources for pulp and paper production in Colombia 62 CHAPTER VII. CUBA I. Productive capacity and consumption A. Productive capacity and consumption of paper 64 B. Productive capacity and consumption of chemical pulp for paper.... 64 C. Productive capacity and consumption of mechanical pulp 64 D. Productive capacity and consumption of dissolving pulp 64 II. Development possibilities based on sugar-cane bagasse 64 CHAPTER VIII. ECUADOR I. Estimates of future consumption of pulp and paper 70 II. Principal resources for pulp and paper production in Ecuador 70 v CHAPTER IX. MEXICO Page I. Summary and conclusions 73 II. Productive capacity and consumption A. Productive capacity and consumption of paper 75 B. • Productive capacity and consumption of chemical pulp for paper 75 C. Productive capacity and consumption of mechanical pulp 76 D. Productive capacity and consumption of dissolving pulp 76 III. Development possibilities based on conifers A. Comparison of future pulpwood requirements with the probable volume available 76 B. Utilization of the coniferous forests of Michoacân 77 C. Utilization of the coniferous forests of Durango 78 D. Utilization of the coniferous forests of Chihuahua 79 E. Utilization of the coniferous forests of Guerrero 79 IV. Development possibilities based on tropical woods 80 CHAPTER X. PARAGUAY 85 CHAPTER XI. PERU I. Productive capacity and consumption 87 II. Principal resources for pulp and paper production in Peru A. Resources in the Amazon area 87 B. Expansion possibilities based on sugar-cane bagasse 88 CHAPTER XII. SURINAM, BRITISH GUIANA AND FRENCH GUIANA 90 CHAPTER XIII. VENEZUELA I. Productive capacity, consumption and expansion needs 94 II. Development possibilities based on forest resources 94 III. Development possibilities based on sugar-cane bagasse 94 ANNEXES I. STATISTICAL SERIES FOR PRODUCTION, IMPORTS, EXPORTS AND APPARENT CONSUMPTION OF PAPER AND PAPERBOARD 97 II. ESTIMATE OF FUTURE CONSUMPTION FOR PAPER AND PAPERBOARD 129 vi Index of Tables CHAPTER I. LATIN AMERICA Page 1. Relationship between production, imports and consumption of paper and paperboard, 1950 8 2. Geographic distribution and installed capacity of the pulp and paper industry 9 3. Estimated future demand for paper, chemical pulp for paper and mechanical pulp - 9 4. Expansion needs of the pulp and paper industry 10 5. Quantity of wood required annually to satisfy the demand of the paper industry 10 6. 6-A, 6-B. Potential of certain fibrous raw material sources 11-13 7. Calculated potential of certain fibrous raw material sources compared with future requirements 13 8. List of Latin-American pulp and paper projects under construction or • likely to be constructed during 1950-1960 14 CHAPTER II. ARGENTINA 9. Geographic distribution and installed capacity of the pulp and paper industry in 1951 22 10. Estimated future demand for paper, chemical pulp for paper and mechan- ical pulp. 22 11. Expansion needs of the pulp and paper industry 23 12. Apparent consumption of rayon and acetate, and its equivalent in filament and dissolving pulp 24 13. Average dimensions of tracheids and fibres of pulping species 25 14. Chemical analysis of certain native woods 25 15. Quantity of wood required annually to satisfy the demands of the paper industry 26 16. Determination of the afforestation rate necessary to supply future expansion of capacity of chemical pulp, assuming the sole utilization of Misiones pine 26 17. Calculated potential of wheat straw as raw material for pulp in the provinces of Buenos Aires, Córdoba, Entre Ríos and Santa Fé 27 18. Total potential of wheat straw as a raw material for pulp, and amount which could be absorbed by the future expansion of the industry 27 19. Determination of the afforestation rate necessary to supply future expan- sion of capacity of chemical pulp, assuming the utilization of both Misiones pine and wheat straw as raw material 28 20. Calculated potential of sugar-cane bagasse as raw material for chemical pulp 28 21. Determination of the afforestation rate necessary to supply future increases of capacity of chemical pulp, assuming the utilization of Misiones pine, wheat straw and cane bagasse as raw material 29 22. Determination of the afforestation rate for salicaceous species (poplar and v willow) required to supply future expansions in the capacity to produce mechanical pulp 29 CHAPTER III. BRAZIL 23. Geographic distribution and installed capacity of the pulp and paper industry 43 24.