Smurfit Westrock invests R$1 billion to grow in the paper and cellulose sector

Smurfit Westrock, one of the largest global paper and packaging manufacturers, consolidated an investment of R$1 billion in Brazil over the last two years to expand production capacity, accelerate innovation and expand its share of the national market.

According to the CEO of the Brazilian operation, Manuel Alcalá, the plan is part of the company's global strategy to grow above the market pace in the coming years. "Brazil is a country to be in and to grow. If the market grows by a certain percentage, our goal is to grow even more", said the executive in an interview with CNN Brasil.

The investment will be mainly directed to the expansion of manufacturing capacity, industrial automation, artificial intelligence and the development of new solutions. According to Alcalá, the objective is to increase operational efficiency and ensure greater service reliability in a scenario of more volatile global chains.

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"The investment seeks to increase our capacity, but also improve reliability for customers. The world is going through a period of great uncertainty and rising costs, so we need to be prepared to continue supplying packaging for essential products," he said.

The company was born from the merger between Smurfit Kappa and WestRock, completed in 2024, and is present in around 40 countries, with approximately 500 industrial units. Globally, it produces around 21 million tons of paper per year, a volume similar to that of all production in Western Europe.

In 2025, Smurfit Westrock reported net income of US$699 million on revenue of US$31.1 billion. Adjusted Ebitda reached US$4.9 billion, driven by the strengthening of industrial activity and the company's global scale.

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In Brazil, where it began operations in 2016, the company has units distributed from the Northeast to the South of the country, in addition to forestry operations in Santa Catarina. In the region, the company has around 52 thousand hectares of land, of which approximately 25 thousand hectares are dedicated to the cultivation of pine and eucalyptus to supply production.

According to Alcalá, the integration between virgin and recycled fibers allows the quality of packaging to be maintained without compromising the circular economy model.

Brazilian operation consolidates optimism
For the CEO, factors such as geopolitical stability, availability of natural resources, agribusiness productivity and the size of the consumer market place Brazil among the group's main investment destinations.

"Brazil has unique characteristics. It is an extremely attractive country for investments due to its stability, highly productive agribusiness, natural resources and the quality of its people", he stated.

Brazilian production is destined exclusively for the domestic market, but the company expands its activities throughout Latin America. According to Alcalá, high domestic consumption provides approval for investments and a positive outlook for growth.

"The packaging produced in Brazil is destined exclusively for the Brazilian market. Many of our customers, especially in agribusiness, export their products, such as meat and fruits.

Thus, our packaging ends up arriving abroad along with these products", he explained.

In Latin America, the company maintains integrated operations in countries such as Colombia, Argentina, Peru, Ecuador, Costa Rica, Dominican Republic and El Salvador, using a regional network to supply paper when necessary.

On the continent, the company recorded revenue of US$2.1 billion and adjusted Ebitda of US$485 million in 2025, a result attributed to the growth in volumes sold, margin gains and the expansion of regional integration following acquisitions made in Ecuador.

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Agribusiness among main customers
According to the executive, the cardboard packaging industry serves practically all sectors of the economy, from food, beverages and medicines to chemicals and industrial goods.

"Packaging proved to be an essential service during the pandemic. We are present practically throughout the economy because each segment needs specific solutions", he stated.

The company develops personalized packaging for different production chains. Products intended for export, such as meat and fruit, require more resistant packaging, produced with a greater proportion of virgin fibers to withstand long periods in refrigerated chains and international transport.

Products with lower structural requirements use a higher percentage of recycled fibers.

According to Alcalá, the company has more than 1,600 developers connected by global innovation platforms to adapt packaging to the logistical needs of each client.

Sustainability remains one of the company's pillars. Globally, Smurfit Westrock recycles around 16 million tonnes of materials per year and invests in reducing carbon emissions through industrial improvements and the development of more efficient packaging.

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Source: CNN