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The Chilean Company Arauco Is Investing R$ 15 Billion in the Construction of Its New Pulp Mill in Mato Grosso do Sul. The Expectation Is That Over 12 Thousand Jobs Will Be Created.
Mato Grosso do Sul Will Receive Its Fifth Pulp and Other Wood-Based Products Plant. On this Wednesday (22), one of the main companies in the sector in Latin America, Arauco, announced the installation of a new factory in the municipality of Inocência. The Chilean group already has eucalyptus areas planted in the municipality to meet the project’s demand. The estimated investment in the pulp mill is R$ 15 billion, generating benefits for over 14 thousand families and jobs for more than 10 thousand.
Arauco’s Factory in Mato Grosso do Sul Promises to Generate Thousands of Jobs
The expectation is that Arauco’s factory in the state will create 12 thousand jobs at the peak of construction, as well as generating 250 direct jobs and 300 indirect jobs when it starts operating, in addition to 1.8 thousand permanent jobs in the forestry sector.
The announcement was made by Reinaldo Azambuja, the Governor of the State, alongside the company’s board during the official launch event of the State Plantation Forests Plan of the Department of Production, Environment, Economic Development, and Family Agriculture.
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For the governor, this is yet another commitment made and fulfilled with the economic development of Mato Grosso do Sul. According to Azambuja, the state will host one of the largest pulp mills in the world, which will be a modern facility aimed at generating jobs, income, opportunities, and social development in a region that also integrates the Eastern Forest Coast but had no enterprise of this kind.
The arrival of Arauco’s factory shows investors’ confidence in Mato Grosso do Sul, the tax incentives, logistical structure, and legal security that the company is creating for those who need to market their production.
Arauco Aims to Expand the State’s Capacity
Secretary Jaime Verruck (Semagro) highlighted the transformation brought about by the arrival of pulp industry factories. The major challenge for the state is logistics, and the factory that will be installed in Ribas do Rio Pardo by Suzano, along with the one announced this week, creates capacity for Mato Grosso do Sul to maintain its expansion rate over the next 4 to 5 years at rates higher than 5%. It’s a joint effort with the private sector that believes in the state, for the well-developed environment.
Arauco’s CEO, Matias Domeyko Cassel, commented on the choice of the state and stated that Brazil is an essential hub for the group’s global strategy, where the company has operated since 2002 with its timber and forestry operations divisions. Now it is investing in the country, bringing a pulp mill.
Forestry Sector Generates 27.2 Thousand Jobs
According to the mayor of Inocência, Toninho da Cofapi, the enterprise will bring the long-awaited development for the generations of the municipality. Cofapi thanked Arauco’s board for trusting in the state.
It is important to emphasize that only the forestry sector of Mato Grosso do Sul is responsible for generating 27.2 thousand jobs, with 14,901 of them being direct and 12,312 indirect. Just in the last year, the sector generated about 6,266 more jobs compared to 2020.
The expansion of job positions is expected to continue in the coming years, with investments already underway in the state, such as the pulp mill of Suzano in Ribas do Rio Pardo, valued at R$ 19 billion. Thus, the state currently has three pulp mills installed and operating.
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