The Pulp and Paper Industry: Navigator Company

The Navigator Company industrial complex on the Mitrena peninsula is one of the largest pulp and paper mills in Europe. With a capacity of ~775,000 tonnes of paper and ~550,000 tonnes of pulp per year, it generates ~1% of Portugal’s GDP and accounts for ~3% of national goods exports. For Setúbal, it is both an economic anchor and a source of long-standing environmental debate.

From Portucel to Navigator: a history of transformation

The enterprise traces its roots to 1952, when Portucel was established with its first pulp mill in Cacia (Aveiro). Pine-based pulp production began in 1953, followed by eucalyptus pulp in 1957.

In 1964, the Portuguese government decided to extend its pulp operations into papermaking. Construction began on a complex at Mitrena in Setúbal, combining a pulp production unit (Portucel) with an integrated paper mill (Indústria Nacional de Papéis, later Inapa).

1967 — pulp production launched in Setúbal. 1969 — paper production began.

After the Carnation Revolution, the company was nationalised. In 1975, several Portuguese pulp and paper mills were merged to form the state-owned Portucel.

Key milestones in privatisation and consolidation:

On 6 February 2016, Grupo Portucel Soporcel adopted the corporate brand The Navigator Company — named after the group’s flagship office paper product. The rebrand symbolised the unification of companies with over 60 years of history under a single global identity.

The Setúbal complex

The industrial complex is located on the Mitrena peninsula in the Sado estuary, adjacent to the Port of Setúbal.

The Setúbal complex is one of four Navigator industrial sites in Portugal (alongside Cacia, Figueira da Foz and Vila Velha de Ródão).

Economic significance

The Navigator Company is the largest private employer in the industrial sector of the Setúbal Peninsula.

The controlling shareholder is the Semapa holding (~77% of shares), linked to the Queiroz Pereira family — the same family that controls Secil.

Brands and products

Navigator is the global leader in the premium office paper segment. Revenue breakdown by segment:

Key office paper brands: Navigator, Pioneer, Discovery, Inacopia. Office paper accounts for 75% of total turnover.

Environmental issues

Odour and air quality

Pulp production inevitably involves hydrogen sulphide compound emissions. The Setúbal plant is the second-largest atmospheric polluter in Portugal (after the Sines power station). Under normal north-westerly winds, emissions drift into uninhabited areas, but when the wind turns southerly, unpleasant odours reach the residential areas of Setúbal, Palmela and even Lisbon.

In 2024, Navigator invested in a new high-efficiency Recovery Boiler for collecting and incinerating odorous gases, along with a new biomass-fuelled lime kiln.

Eucalyptus monoculture

[DISPUTED] Portugal has the highest share of eucalyptus plantations among European countries. Critics point to:

• Loss of biodiversity in monoculture zones
• Increased fire risk (eucalyptus is a fast-burning species)
• Water deficit during dry periods
• Displacement of native vegetation

Proponents respond that Navigator manages ~106,000 hectares of forest to FSC and PEFC standards, and that eucalyptus plantations provide CO₂ sequestration and rural employment.

Proximity to Arrábida Park

The Mitrena complex sits just a few kilometres from Arrábida Natural Park and the Natura 2000 zone. According to local studies, industrial facilities in the region (including Navigator and Secil) account for ~95% of atmospheric emissions in the municipalities of Setúbal, Palmela and Sesimbra.

Sustainability

Despite environmental criticism, Navigator actively invests in certifications and ESG initiatives:

• FSC Chain of Custody (FSC-C008924) and FSC Forest Management (FSC-C010852)
• PEFC Chain of Custody (PEFC/13-32-001)
• 100% of wood for pulp sourced from controlled origins
• 2024: Sustainalytics awarded Navigator “ESG Industry Top Rated Company 2025” status with a score of 11.6 — 1st place among 85 companies in the global Paper & Forestry cluster

Significance for Setúbal

The Mitrena pulp and paper complex is an economic pillar of the region alongside the port and the Secil cement plant. Together, these three giants form the industrial backbone of Setúbal, providing thousands of jobs and billions of euros in export revenue. Yet it is precisely this concentration of heavy industry next to one of Europe’s most valuable natural areas that makes the question of ecological balance central to the city’s future.

See also

• The Cement Industry: Secil and the Outão Plant
• The Modern Port of Setúbal
• Arrábida Natural Park
• Setnave Shipyards