MEXICO - Celulosa Arauco y Constitución S.A. (Arauco) recently announced that its Board of Directors has approved the decision of its subsidiary Arauco Industria de México, S.A. DE C.V. to build a new MDF production line.

To be developed in its industrial complex located in Zitácuaro, Michoacán, Mexico.

The project involves an estimated investment of US$235 million, to be financed with the company's own resources, and will incorporate state-of-the-art operational, environmental, and safety technology.

It is estimated that, once it starts operations, this project will add close to 300,000 cubic meters of MDF production per year, of which 150,000 cubic meters will be melamine-laminated, to meet the growing demand of the furniture, construction and decoration industry in Mexico.

Arauco believes that this project will have a positive impact on its future results, although these are not yet quantifiable.