Brazil, Chile, and Uruguay today account for well over a third of world exports of cellulose, yet this industry only came into existence in the late twentieth century. The evolution of this industry across the three countries is the object of this study. This nascent industry required direct government support in all three countries to be successful. Forestry laws and government investments in research, education, and factory construction were all needed to encourage local and foreign capital. There were differences among these countries in their linkages to other economic sectors as well as their export mix. But in all three countries, the forestry industry was part of a general modernization of agriculture that allowed for successful competition in world markets.