Suppliers and Contractors

Our suppliers and contractors are indispensable for the company due to their capacity to generate value and contribute to the development of local communities. That is why, we prefer working with as many local suppliers and contractors as possible in each location. To that end, local suppliers are defined as companies based in the same region as our forestry operations or production facilities that depend on their sustainably sourced raw materials and responsible services for the continuity of their business operations.

Number of total local suppliers and contractors and share of MSMEs among them

  2016 2017 2018 2019
Total number of suppliers and contractors 29,415 30,494 31,428 25,339
Share of local suppliers and contractors 95.4% 95.7% 95.6% 96.5%
Share of MSME suppliers and contractors 26.8%

Yearly spend in million USD

2016 2017 2018 2019
Suppliers and contractors 4,096 4,213 4,667 4,629
Local suppliers and contractors 85% 86% 85% 82%
MSME suppliers and contractors 18%

Critical Suppliers

Regarding critical suppliers, in Celulosa, Biopackaging and Softys, these are defined according to the following criteria

  • High-volume suppliers (or similar)
  • Critical component suppliers (or similar)
  • Non-substitutable suppliers (or similar)

At the same time, each business unit considers their own additional criteria:

  • Annual spend iqual to or over USD 1 million
  • Manufacturers of goods: exclusive producers
  • Industrial maintenance: providing services for critical components with an acceptable risk level according to the ‘Strategic Company Qualification SCQ’ matrix
  • Local suppliers: based on the social impact on their surrondings and our operations
  • Annual spend over USD 1 million
  • Identified as ‘Highly Critical’ within the business area’s matrix
  • Less than 100 suppliers in the database for that product or material
481 critical suppliers were identified with the use of this matrix across all three-business areas out of 17,623 suppliers