BRAZIL – On September 8th Masisa announced the sale for USD 102.8 million of its manufacturing operations in Brazil to Arauco (Chile), the second largest panel producing company in the world after Kronospan (Austria).

This operation is in tow with the Company’s announced divestment plan in Brazil, as well as in Argentina and Mexico. In that regards, Masisa recently sold its assets in Argentina to Austrian Egger.  The transaction will allow Masisa to focus its commercial activity on higher value-added businesses in the Andean Region, Central America, the United States, Canada and other export markets, maintaining its productive capacity to supply the region from Chile and Venezuela and also maintaining its forestry business.

The main manufacturing assets of Masisa Brazil consist of two industrial complexes located in Ponta Grossa (Paraná) and Montenegro (Rio Grande do Sul), that include a line of MDF panels with an installed capacity of 300,000 m3 per year, a line of MDP panels with an installed capacity of 650,000 m3 per year and four melamine coating lines with a total installed capacity of 660,000 m3 per year. Arauco will assume debt of Masisa Brazil for USD 44,7 million, and Masisa will receive USD 58,100,094 from Arauco Brazil. This transaction does not include Masisa Brazil’s cash, which is estimated at USD 11,2 million. With this operation Masisa is one step closer to reaching its goal of raising USD 500 million in order make a significant difference on its debt ratio.