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Global demand for wood products is expected to increase by 49% by 2050*and hardwood pulp—used to make basic consumer goods like tissue products—is one of the fastest growing sectors. Latin America’s dominance in growing global hardwood pulp markets reached new heights this year following major capacity additions in Brazil and Uruguay. In late-July, Brazilian pulp giant Suzano started operations at its new eucalyptus pulp mill in Mato Grosso do Sul, Brazil. Suzano’s new 2.25 million ton pulp mill is the world’s largest single production line. This follows close behind the start of operations at UPM’s new 2.1 million ton eucalyptus pulp mill Paso de los Toros in the second half of 2023. These state of the art mills together with Latin America’s productive timberland base and highly developed forest sector have supported the region’s rise to become the global low-cost producer of hardwood pulp and major supplier to markets worldwide. Between 2010 and 2024, Latin America’s hardwood pulp capacity more than doubled and market share CAGR was 2.5% over the same period. Sustainably managed eucalyptus plantations in the region will be critical to meet growing demand for the woodfiber used to make hardwood pulp. Nuveen Natural Capital’s certified eucalyptus investments in Brazil and Uruguay are a core part of our global timberland strategy, giving investors exposure to these expanding markets and providing sustainable inputs to production in an environmentally friendly and socially responsible way. Learn more about our timberland investment capabilities and teams in Latin America: https://ter.li/aiulh7 * U.N. FAO, 2024

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