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Chilean company Arauco announces the construction of a new pulp mill in Brazil, bringing an investment of R$25,12 billion. The project is expected to create thousands of jobs and boost economic growth.
Brazil is about to receive one of the largest investments in the history of the pulp sector. Chilean pulp and wood panel manufacturer Arauco recently announced the approval of a mega investment for the construction of its first pulp mill in the country. The so-called “Sucuriú Project”, located in Mato Grosso do Sul, promises to revolutionize the market and bring a significant impact to the Brazilian economy, both for the magnitude of the investment and for the number of jobs that will be created. With an investment of R$25,12 billion, this new pulp mill marks an important milestone for the Brazilian industrial sector. The project was officially announced by the controlling company Copec this Tuesday (24).
The Sucuriú Project: the new pulp mill that puts Brazil at the center of global production
Arauco’s new pulp mill, called Projeto Sucuriú, will be built in Mato Grosso do Sul, approximately 50 kilometers from the city of Inocência, and promises to be a game-changer in the pulp industry. The mega investment, of approximately R$25,12 billion (equivalent to US$4,6 billion), is the largest ever made by Arauco in its history and is a clear sign of the company’s commitment to the Brazilian market.
With an estimated annual production capacity of 3,5 million tons of bleached pulp, the new pulp mill will surpass even Suzano's most recent unit, which has a capacity of 2,55 million tons per year. The factory will be equipped with technologies supplied by the Finnish company Valmet, known for its excellence in industrial solutions.
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INDUSTRY AND TRADE – FREE MARKET
This Arauco's mega investment will bring not only a new factory to Brazil, but also an important contribution to the energy sector. The plant will generate more than 400 megawatts (MW) of electricity, of which 200 MW will be consumed by the plant itself. The surplus, enough to supply a city of more than 800 inhabitants, will be integrated into the national electricity system.
Economic and social impacts: job creation and regional development
One of the most attractive aspects of this mega investment is the job creation. It is estimated that thousands of jobs will be created, both directly and indirectly, during the construction and operation phase of the new pulp mill. Mato Grosso do Sul, especially the Inocência region, will benefit immensely from the economic development driven by this new mill.
The strategic location of the new pulp mill was not chosen at random. Arauco has been operating in the region since 2009, carrying out forest management and timber sales. The project was designed based on the highly favorable climate conditions for growing eucalyptus in the state, a tree essential for pulp production.
In Brazil, the Eucalyptus reaches the ideal cutting point in about seven years, which represents half the time required for the same process in Chile.
In addition to the jobs directly generated by the new factory, the impact of Arauco's mega investment will extend throughout the production chain, benefiting everyone from forest management workers to suppliers of industrial materials and services. local and regional economy will have a significant boost, with the expectation of attracting new investments and companies to the region.
A major investment: how Arauco will finance its new pulp mill
The massive investment required to build the new pulp mill will be financed through a combination of methods. Arauco plans to issue debt, conduct a capital increase of up to US$1,2 billion (equivalent to R$6,55 billion) and use the company’s own resources. This financial plan reflects the strength of Arauco, one of the world’s leading pulp manufacturers, and the company’s confidence in the potential of the Brazilian market.
The Sucuriú Project is in the earthmoving phase, and The new pulp mill is expected to begin operations in the last quarter of 2027. However, the Chilean company warned that the schedule may be subject to change as the project's development progresses.
The new mill also highlights the importance of strategic partnerships for the success of the project. Valmet, the Finnish company that will supply the equipment, is a leading global player in technology for the pulp and paper industries. This collaboration will ensure that the Arauco mill is equipped with the most modern and efficient technology in the industry.
The role of Mato Grosso do Sul in the industrial and forestry development of Brazil
Mato Grosso do Sul has established itself as one of the main industrial and forestry hubs in Brazil. Arauco's new pulp mill joins other major projects underway in the state, such as the recently opened Suzano in Ribas do Rio Pardo. The state's strategic location, combined with well-structured government policies, make Mato Grosso do Sul an attractive environment for large investments in the pulp and forestry sector.
The state government has adopted an industrial policy aimed at strengthening the forestry sector, recognizing the enormous growth potential that this area has. The favorable climate for eucalyptus cultivation and the available infrastructure are factors that contribute to attracting new projects and investments such as Arauco.
With the arrival of the new cellulose factory, Mato Grosso do Sul consolidates itself as one of the main Brazilian states in cellulose production, with direct impacts on the local and national economy.
The future of cellulose in Brazil: Arauco and the challenges of sustainability
Arauco’s mega investment in the construction of its new pulp mill in Brazil reflects the growing global demand for bleached pulp, used in the production of paper and other essential products. However, with this expansion also comes challenges related to sustainability and environmental management.
Throughout its history, Arauco has been committed to sustainable forest management practices. Eucalyptus cultivation in the Mato Grosso do Sul region follows strict environmental standards, aiming to minimize the impact on local biodiversity and promote the responsible use of natural resources. The new pulp mill must follow these same principles, ensuring that production is both economically viable and environmentally responsible.
This concern for sustainability is an essential factor for the long-term success of the Sucuriú Project and for the future of cellulose production in Brazil.
The impact of Arauco's new pulp mill in Brazil
Arauco's new pulp mill is a project that promises to have a significant impact on the Brazilian economy. With an investment of R$25,12 billion, the Chilean company is bringing to the country not only a new production unit, but also thousands of jobs and a boost to regional development.
The cellulose sector in Brazil is rapidly expanding, and Mato Grosso do Sul is consolidating itself as one of the main production hubs in the country.
As the plant nears completion, Brazil continues to stand out on the global stage as one of the largest producers of pulp, with a promising future driven by investments such as Arauco’s.
I was in Inocencia to join the company Aterpa in July and received some very unpleasant information. I could not be hired because of my age. 70 years old. I considered the company's attitude to be ridiculous and absurd, which goes against everything that is announced about job creation in Inocencia. I would like to see a solution for this event.
Good afternoon, so I hope that God blesses the ruler of this country and brings much more investment to this country, we need it, Amen.
I will be part of this Brazilian history