BRAZIL – Arauco has officially launched its Sucuriú Project with the groundbreaking ceremony of a new pulp plant in Inocência, Mato Grosso do Sul. This marks the start of the largest investment in the company’s history, valued at USD 4.6 billion.

Once completed, the plant will become the world’s largest single-phase pulp mill, with an annual production capacity of 3.5 million tons. Operations are slated to begin by the end of 2027.

The ceremony was attended by notable officials, including Brazil’s Acting President Geraldo Alckmin, alongside representatives from the federal, state, and municipal governments. Arauco’s CEO, Cristián Infante, highlighted the company’s commitment to sustainability and the welfare of local communities: “We believe that our development should be guided by respect for nature and the well-being of people. This project will bring positive transformation to Mato Grosso do Sul.”

The Sucuriú project is set to strengthen Arauco’s position in Brazil and enhance its leadership in the global pulp market. It is expected to create over 14,000 direct jobs during construction, with approximately 6,000 employees in the industrial, forestry, and logistics sectors once operational. In addition to creating jobs, the project is expected to boost local tax revenues and attract further investments, reinforcing Mato Grosso do Sul’s role as a global center for the pulp industry.

The project will cover an area of 3,500 hectares, with over 4.8 million square meters of construction space. This includes critical production facilities such as wood preparation, cooking, bleaching, drying, chemical recovery, and energy generation.

Environmental sustainability is a key focus, with Arauco implementing a Management and Environmental Monitoring Plan that includes 24 programs aimed at minimizing environmental impacts. The plant will feature one of the lowest water consumption rates in the sector, at 26 m³ per ton of pulp produced, with 100% of wastewater treated and nearly 90% of the water used returned to natural watercourses.

In addition, Arauco is building a Waste Treatment and Valorization Center to transform waste materials into useful products, further promoting a circular economy. This center will produce compost and soil acidity correctors, contributing to sustainable land management practices in the region.

The Sucuriú plant underscores Arauco’s dedication to not only expanding its business operations but also to advancing sustainable practices in the pulp and paper industry. This investment marks a significant step toward the company’s long-term goals of decarbonization and energy transition.