CHILE - According to local press, Chilean forestry giant Arauco is contemplating acquiring an important share of Tafisa Spain, an affiliate company of the 6th largest global wood panel producer, Portuguese Sonae industria.

"This being, the Chilean company would enter for the first time panel production in Europe. Because this investment would grant rights in the factories linked to Tafisa in Europe and also those located in South Africa" reports Chilean daily El Mercurio.

Through the recent acquisition of Flakeboard in North America Arauco with an annual capacity of more than 6 million m3 a year, is today the fourth largest global producer of wood panels after Kronospan, Egger and Swiss Krono. Furthermore, Arauco recently informed the market that it is evaluating the construction a wood panel factory in Grayling, Michigan with an annual nominal capacity of 750.000 m3 that would require a USD 325 million investment.

This would not be the first time that Arauco and Sonae Industria have had business dealings. Back in 2009 Arauco, through its Brazilian subsidiary Placas Do Parana, paid USD 227 million for 100% of Tafisa Brazil, Sonae Industria’s affiliate company in that country.