Chilean forestry group Celulosa Arauco y Constitución S.A. (Arauco) plans to invest $3bn in a new hardwood kraft pulp mill in Brazil. The company already signed a cooperation agreement with the Brazilian state of Mato Grosso do Sul.
Arauco announced that the signing of the agreement with the authorities was the first step of the so-called Sucuriú project, the goal of which is the construction of a mill with a capacity of 2.5 million t of hardwood pulp in a site close to Inocência. However, the project is still subject to a number of conditions which Arauco is currently looking into, among them the environmental impact assessment, the approval of the Board of Directors, possible wood supply and the future market development.
Arauco said construction of the new mill could start in 2025, with commissioning three years later in 2028. The site 50 km from Inocência would offers several benefits; among them high availability of wood nearby and good logistics opportunities for pulp exports.
Arauco has been active in Brazil since 2002 and is now considering starting up its own pulp production in the country. The group currently has a production capacity of 3.9 million t of pulp, spread over mills in Chile, Argentina and Uruguay.
Currently, Arauco's new pulp line in Chile is close to completion. The line will have a capacity of 1.56 million t of bleached eucalyptus pulp.