ARAUCO Considering Investing USD 3 Billion in 2.5 Million Tonnes Hardwood Pulp Mill - Papermart
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ARAUCO Considering Investing USD 3 Billion in 2.5 Million Tonnes Hardwood Pulp Mill

For this investment in the pulp mill, ARAUCO has announced the recent collaboration agreement with the State of Mato Grosso do Sul in Brazil.

October 1, 2022

ARAUCO

ARAUCO has announced the recent collaboration agreement with the State of Mato Grosso do Sul in Brazil. This marks the first step towards the construction of a new pulp mill in this country.

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Notably, this initiative has been named “Project Sucuriú”. This project is subjected to a number of variables that are currently being assessed. Among them, market conditions, the environmental impact permit, the timber offer assessment, and the approval of the Board of Directors, are considered. If conditions are met, the construction stage of this new plant is expected to begin in 2025.

The plant would have a production capacity of 2.5 million tonnes of hardwood pulp and would be located 50 km from the area of Inocência, which offers several benefits from a logistics point of view. In fact, there is a high-quality forest region near the plant and the area facilitates pulp exports to other areas.

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Notably, Brazil is a very relevant centre for the company’s global strategy. The Company has been operating in this country since 2002.