Arauco plans to invest $3 billion in new pulp plant in Brazil

Chilean pulp and wood panel manufacturer Arauco has signed an agreement to invest around $3 billion to build a new pulp mill in Brazil, Reuters reports.

The industrial plant, called the Sucuriu Project, will be constructed in the central-western state of Mato Grosso do Sul, and will represent a major upgrade in terms of the company’s production volume.

The plant will have a capacity to process 2.5 million tonnes of hardwood pulp per year, which alone is almost half of Arauco’s current capacity of 5.2 million tonnes, according to Arauco.

The plant is still pending approval from the company’s board and environmental authorities. It is scheduled to start operating in early 2028.

In a press release the company says that if conditions allow for it, the construction stage of this new plant could begin in 2025. The plant will be located 50 km from the area of Inocência, in Mato Grosso du Sul, which offers several benefits from a logistics point of view: there is a high-quality forest mass near the plant and the area facilitates pulp exports to other regions.

According to Reuters, the investment marks Arauco’s entry in Brazil’s pulp sector, which includes major local players such as Suzano SA, Klabin SA and Irani.

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