MEXICO – Arauco, the leading producer of wood-based panels in Mexico and the second largest in the world, has initiated an environmental impact assessment study as part of the evaluation of a new medium-density fiberboard (MDF) production line.

The project, which is subject to approval by the competent authority, will enable the company to double its production capacity in response to the growing demand from the furniture, construction, and decoration industries.

This new MDF production line, which involves an estimated investment of USD 200 million, will incorporate state-of-the-art operational and environmental technology.

In addition, its supply seeks to promote a circular economy model, empowering small local forestry producers and safeguarding the ecosystem values of its surroundings.

Regarding the timing of the project, José Manuel Hernández, CEO of Arauco Mexico, said that “the development, construction and start-up of the project depend on the progress of various approvals, but our expectation is to begin production during 2024.