In 1966 Ludwig became attracted to ideas of development in the Amazonian Basin.
A brutal military dictatorship had toppled the progressive
Goulart government in
a 1964 coup, with US backing, and US investment was encouraged by the conservative Brazilian generals in power. In 1967, he purchased about 4 million acres (1.6 million ha) of land in Brazil on the north bank of the river in the northeast interior for $3 million. He planned to construct a pulp paper factory, known as the
Jari project, as he projected a shortage of fiber on the world market in the coming decades (about which he was right). The site was downriver from American
Henry Ford's failed massive project to produce rubber, for which he built a workers' city in the jungle,
Fordlandia. Ludwig planned a massive pulp paper project, and cleared land to plant two varieties of trees to be harvested for paper. He had a 26-mile railroad constructed, as well as 3,000 miles of trails and roads; the settlements had 30,000 inhabitants by early 1982. To feed all the workers, he raised cattle and planted 15,000 acres in rice. In order to develop this, he essentially built a planned community,
Monte Dourado. A slum,
Beiradao, arose haphazardly across the river from Ludwig's development. Ultimately his agricultural ventures on that land were not successful. Neither the rice nor one variety of trees took well to the region's soil. But in 1978 he had a plant shipped by sea in two parts from where it was fabricated in Japan: these were "two behemoths 70 meters high, unique in the history of the merchant navy." The plant was assembled and beginning in February 1979, Jari produced 750 tons of cellulose per day. Losses of $1 billion and mounting criticism of his business practices led Ludwig to sell out to Brazilian investors in 1981. He had pushed for more cooperation from the government, and announced failing health as a reason to sell his interests.
Le Monde described Ludwig with his Jari project as ahead of his time. It reported that in the 21st century a Brazilian consortium bought the Jari complex.
Eucalyptus and
Australian pine trees were planted that are better suited to the region. New Finnish machinery and technology has drastically reduced the required labor force and, as
Le Monde noted, machines neither strike nor go to the brothels of Beiradao. The government cooperated in approving a hydropower project which Ludwig had sought, and even the slum was improved, as well as renamed to
Laranjal do Jari. Ludwig had the right vision about the need for paper, but was ahead of his time and too late in his life to see the project through to its current success. ==Philanthropy==