PORTUGAL –  Sonae Arauco, one of the world’s leading manufacturers of wood-based panels for furniture, construction and interior design, has started operations at the first industrial-scale MDF recycling line at its Mangualde plant in Portugal.

The EUR 8 million investment represents a pioneering milestone in the sector and strengthens the company’s commitment to the circular economy. The new facility makes it possible to recycle end-of-life MDF panels into raw material for new MDF/HDF boards, with the capacity to integrate up to 20% recycled fibres into production.

“This investment is strategic not only for Sonae Arauco, but for the entire wood-based panel industry,” said Rui Correia, CEO of Sonae Arauco. “Introducing recycled MDF fibres into new panels in an industrial setting shows our commitment to circularity and the cascading use of wood.”

In 2024, the company processed 809,000 tonnes of recycled wood, increasing its incorporation rate to 33%. In its particleboard ranges, recycled wood already accounts for over 70%, with the potential to reach 75% in some regions by year-end.

The Mangualde line is part of the TransForm project, under Portugal’s Recovery and Resilience Plan, reinforcing the strategic role of the panel industry in advancing a circular bioeconomy.