Arauco plans to advance the approval of the Brazilian eucalyptus pulp bleaching project by the end of the year

Carlos Altimiras, CEO of Arauco, a Chilean pulp producer, stated in an exclusive interview with Fastmarkets that Arauco aims to obtain all installation and environmental permits required for the new Brazilian pulp plant (Sucuriú project) by the end of this year.

In January of this year, Arauco received the necessary preliminary permits for the project. This new pulp factory is located in Inocência, South Mato Grosso state, in central western Brazil, marking Arauco's first investment in a pulp line outside of Chile.

Altimiras said, "Currently, we have made progress in forest resources and are working hard to advance engineering and logistics work, as well as all necessary permits." He added that permits for basic engineering will be obtained by the end of September.

Altamiras explained, "We plan to initiate equipment procurement negotiations before the end of the year. After clarifying these, we plan to submit the project to the board of directors for approval in the fourth quarter of 2024. By the end of this year, we will have everything ready and look forward to a good outcome."

Arauco plans to start operating the new pulp plant in 2028 and will begin the second phase of the project around 2032.

The new factory plans to have an annual production capacity of 2.5 million tons for each eucalyptus pulp bleaching line. The pulp mill will also generate 400 megawatts of renewable energy by burning wood residues, such as tree roots and branches, half of which will be used for its own use and the other half will be exported to the national power grid.

According to Altamiras, the company started planting eucalyptus trees 14 years ago and currently has 210000 hectares of artificial forests in Parana and South Mato Grosso. The company plans to have 285000 hectares of planting area in Brazil by 2025.

Regarding the choice to build a new factory in Brazil, Altimiras clearly stated that Brazil's forestry industry has "enormous importance" in the global market, and the Sucuriú project will give Arauco a highly competitive factory.