30 May 2024

In this must-read interview, our CMPC FP Managing Director, Sebastián Abud, dives deep into CMPC’s customer approach, industry trends and his own story within the forestry world.

1. How long have you been in the Pulp business?

My journey with CMPC began in 2009 when I joined the Boxboard sales division. From there, my path led me to the United States in 2015 to pursue further studies. Upon my return in 2017 to CMPC, I transitioned into the Pulp business, embarking on a new chapter of my career within the company. Initially, my role centered on the sales aspect of the business, focusing on the Southeast Asia market. This allowed me to gain interesting insights into the intricacies of the industry and cultivate relationships with our customers. As I continued to evolve professionally, I transitioned to a pivotal role in Strategy and Market Intelligence, where I delved into the strategic underpinnings of our future operations and closely monitored market trends and dynamics.

In 2023, I seized the opportunity to return to sales, assuming responsibility for the North American market from our office in Atlanta. This role is focused in growing our footprint in the market and fostering lasting relationships with our customers. And now, in the present year, I have embarked on a new chapter as the managing director of CMPC Forest Products. In this pivotal role, I am entrusted with overseeing not only the sales of pulp but also boxboard and Sack Kraft bags. It is a responsibility I embrace wholeheartedly, driven by a steadfast commitment to delivering excellence and driving sustainable growth for CMPC.

This journey has endowed me with a comprehensive understanding of CMPC's operations, from production and sales to strategic planning and market analysis. It has been a rewarding trip characterized by continuous growth, learning, and adaptation, and I am profoundly grateful for the opportunities that CMPC has afforded me throughout my tenure.

2. How do you feel with this new challenge of being part of CMPC FP?

I am thrilled to be part of CMPC Forest Products, especially at such a pivotal time for CMPC. The growth potential in North America is significant, and it is key in our 2030 strategy. It's a privilege to lead such a dynamic team and contribute to our shared goals for the future. It's a thrilling opportunity to lead a company that encompasses not only our pulp business but also our boxboard and Sack Kraft bags offerings. This consolidation of CMPC's diverse product portfolio under one roof marks a significant milestone for our company and underscores our commitment to providing comprehensive solutions to our customers.

This integrated approach not only streamlines the procurement process for some of our customers but also fosters stronger partnerships and deeper collaboration. By offering a broader range of products, we can better cater to our different customers' evolving needs and provide tailored solutions that drive value and innovation. Moreover, CMPC FP's responsibilities extend beyond just providing products. We also take charge of the logistics involved in delivering these products to our customers. From ensuring timely deliveries to optimizing supply chain efficiency, we handle every aspect of the process with meticulous care and attention to detail. This integrated approach allows us to offer aseamless and reliable experience to our customers, further reinforcing CMPC's reputation for excellence and reliability in the market.

I am confident that with our innovative strategies, dedicated team, and strong product offerings, we will have continuous growth in the market with our product portfolio. This growth not only promises stronger service in the market, but also the chance to build lasting relationships with current and new customers and partners. I am eager to lead our efforts in this region and to see the remarkable progress we can achieve together. I am excited about the opportunities that lie ahead.

3. What strategic objectives guided CMPC decision to enter the North American market, and how does the company position itself in this region?

CMPC's decision to enter the North American market was guided by several strategic objectives. Firstly, we aimed to diversify our market presence and reduce dependence on any single region. North America offers a robust and growing market with significant demand for our different products, making it an ideal region for expansion. Secondly, we sought to leverage our expertise in sustainable and innovative product solutions to meet the increasing demand for environmentally responsible products in North America. This aligns with our commitment to sustainability and positions us as a leader in the industry. In terms of positioning, CMPC is focusing on long term customer relationships and establishing a strong brand presence by emphasizing our commitment to quality, sustainability, and customer service. Our strategy includes setting up efficient distribution channels and ensuring top-tier customer service to build trust and long-term relationships. By focusing on these key areas, CMPC is poised to become a leading player in the North American market, delivering exceptional value to our customers and stakeholders.

4. CMPC places a strong emphasis on customer-centricity. Could you explain how this focus influences your decisions?

At CMPC, our commitment to customer-centricity is at the core of everything we do. We understand that our success hinges on the satisfaction and loyalty of our customers. Therefore, this focus heavily influences our decision-making processes.First and foremost, we prioritize understanding our customers; needs, preferences, and challenges. We actively engage with them to gather feedback, listen to their concerns, and identify opportunities for improvement. This customer insight serves as a guiding force in shaping our product development, service offerings, and overall business strategy. Furthermore, our customer-centric approach extends beyond the point of sale. We are committed to building long-term partnerships with our customers, providing ongoing support, and adapting to their evolving needs over time. In essence, our focus on customer-centricity is not just a philosophy but a guiding principle that influences every aspect of our decision-making process. By putting our customers at the center of everything we do, we can better serve their needs, drive growth, and ultimately, achieve mutual success.

5. In your perspective, how does CMPC FP foster and maintain strong relationships with
its customers?

At CMPC FP, fostering and maintaining strong relationships with our customers is a top priority. We believe that these relationships are the foundation of our success and are built upon trust, reliability, and mutual respect. One way we foster strong relationships is by actively listening to our customers. We make it a point to understand their unique needs, challenges, and goals. Through open communication
and regular feedback sessions, we ensure that we are always aligned with our customers expectations and preferences. Additionally, we place a strong emphasis on delivering value to our customers. This means not only providing high-quality products but also offering comprehensive solutions that address their specific requirements. Whether it's through product customization, technical support, or supply chain optimization, we strive to go above and beyond to exceed our customers expectations. Another key aspect of maintaining strong relationships is transparency and honesty. We believe in being upfront and transparent with our customers, especially when it comes to issues or challenges that may arise. By fostering an environment of trust and accountability, we can work together with our customers to overcome obstacles and achieve mutual success. Overall, our approach to fostering and maintaining strong relationships with our customers is rooted in our core values of integrity, collaboration, and customer-centricity. By prioritizing these
principles in everything we do, we can build enduring partnerships that drive long-term success for both CMPC FP and our valued customers.

6. What are the key trends in the forestry industry that you are currently monitoring, and which trend do you believe will have the most significant impact on the future of the pulp market?

I closely monitor several key trends in the forestry industry that have the potential to significantly impact our operations and the pulp market as a whole. One of the foremost trends we are observing is the increasing focus on sustainability and environmental stewardship. Consumers and regulatory bodies alike are demanding more sustainable practices throughout the entire supply chain. This includes responsible forest management, reduced carbon emissions, and the use of renewable resources. As a company committed to sustainability, we are actively investing in eco-friendly technologies and practices to meet these evolving expectations. Another trend that we are closely monitoring is the rise of digitalization and technology-driven innovation in the forestry sector. From precision forestry techniques to advanced data analytics, technology is revolutionizing how we manage forests, harvest timber, and optimize production processes. Embracing these advancements allows us to enhance efficiency, minimize waste, and improve overall productivity. Additionally, the pulp market is experiencing shifting dynamics in global trade patterns and geopolitical factors. Changes in trade agreements, tariffs, and economic policies can have
significant implications for pulp pricing, demand, and supply chain dynamics. As a globally operating company, we remain vigilant in monitoring these developments and adapting our
strategies accordingly to mitigate risks and capitalize on opportunities. Furthermore, the growing demand for sustainable packaging solutions presents a notable trend
that is expected to shape the future of the pulp market. With increasing consumer awareness and regulatory pressures to reduce plastic usage, there is a growing preference for renewable and biodegradable packaging materials, such as paper and cardboard derived from sustainable pulp sources. As a leading producer of pulp and paper products, we are well-positioned to capitalize on this trend and meet the rising demand for eco-friendly packaging solutions. In conclusion, while all of these trends are significant, I believe that the increasing focus on sustainability and the demand for sustainable packaging solutions will have the most significant impact on the future of the pulp market. By staying at the forefront of these trends and leveraging our strengths in sustainability and innovation, we are confident in our ability to
navigate the evolving landscape.