On June 22, Arauco signed a US $3billion investment cooperation agreement with the government of Mato Grosso Sul, Brazil, to build a new pulp mill.

Arauco named the initiative “project Sucuri ú”.

The new plant is located 50 kilometers away from the city of inocencia, with an annual output of 2.5 million tons of coniferous wood pulp.

Mat í as domeyko, CEO of Arauco, commented, “Brazil is an important pole of the company’s global strategy – we have been doing business in this country since 2002, and we are evaluating increasing our investment by entering the pulp business.”

Arauco stressed that the project was subject to a number of variables being studied, including market conditions, environmental impact permits, timber quotation evaluation and board approval. The company added that if conditions permit, the new plant may start construction in 2025.

Arauco pointed out that from the perspective of logistics, the inoc ê ncia region has several advantages: there are high-quality forests near the factory, which is conducive to the export of pulp to other regions.