PORTUGAL – Sonae Arauco, a leading global manufacturer of wood-based panels, is investing approximately EUR 50 million in its Oliveira do Hospital plant in Portugal.

The investment aims to enhance the plant’s competitiveness, sustainability, export capabilities, and contributions to the local community. Key areas of focus include circular economy, decarbonization, operational efficiency, and reforestation efforts in wildfire-affected areas.

As part of its global commitment to reduce carbon emissions by 59% by 2029, the company will implement a solar energy project at the Oliveira do Hospital site to meet around 30% of the plant’s energy needs through renewable sources.

To improve operational efficiency, Sonae Arauco is building two new warehouses at the plant, incorporating digitalization and automation to boost competitiveness and streamline production processes.

In the area of circular economy, Sonae Arauco is investing in a new pre-crushing line to increase the capacity for recycling wood, aiming for 85% recycled content by 2026. The company is also exploring innovative technology to separate MDF from recycled wood chips, enhancing sustainability in its production.These industrial projects are part of the national PRR (Recovery and Resilience Plan ) agendas and are crucial for both the company and the country.

Rui Correia, CEO of Sonae Arauco, said, “These projects will transform our Oliveira do Hospital plant into a global benchmark for the sector, driving green and digital transitions to improve long-term competitiveness and sustainability while creating economic and social value for the community.”

The company is also committed to community engagement through reforestation and recovery of areas affected by wildfires. Sonae Arauco currently manages a burned area in Vale da Macieira (2017) and is negotiating the lease and intervention of 50 hectares to reduce fire risks, control invasive species, restore watercourses, and plant broadleaf trees.

Sonae Arauco plays a key role in the region’s economy, employing over 200 direct workers and nearly 600 indirect workers, with its products mainly targeting the European market.

José António Silva, Plant Manager at Sonae Arauco Oliveira do Hospital, concluded: “Oliveira do Hospital is central to our strategy, and we are reinforcing our investment in the region with innovative, sustainable projects that position us at the forefront of the industry.”