World's Largest Pulp Mill to Be Operated in Brazil: $4.6 Billion Project Will Have 100-Car Train on 1,050 km Route, Producing 3.5 Million Tons and 400 MW of Clean Energy

World’s Largest Pulp Mill to Be Operated in Brazil: $4.6 Billion Project Will Have 100-Car Train on 1,050 km Route, Producing 3.5 Million Tons and 400 MW of Clean Energy

Written by Alisson Ficher

Published on 14/10/2025 at 14:19

Updated on 14/10/2025 at 14:20

Arauco investe US$ 4,6 bi no Projeto Sucuriú, a maior fábrica de celulose do mundo, com energia limpa e ferrovia de 1.050 km.

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Billion-Dollar Project in Mato Grosso do Sul Advances with Pulp Mill in Single Phase, Long-Distance Train to Santos and Own Clean Energy Generation. Exports Reach Three Continents with Record Annual Volume and Automated Industrial Operation.

The Chilean Arauco is building in Inocência (MS) what will be the largest pulp mill in the world built in a single phase, with an investment of US$ 4.6 billion.

Named Project Sucuriú, the venture marks the company’s debut in pulp production in Brazil and promises to transform the region into one of the world’s main commodity hubs.

With operations expected to begin by the end of 2027, the unit will have a capacity of 3.5 million tons of market pulp per year, of which 95% to 98% will be destined for export.

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Logistical Challenge of 1,050 Kilometers

The company’s main challenge until the inauguration will be to ensure transport infrastructure capable of moving 9,600 tons per day from the mill to the Port of Santos (SP), over a distance of 1,050 kilometers.

The strategy involves prioritizing rail transport, with trains of 100 cars specially designed to carry bales of bleached short-fiber eucalyptus pulp.

Alternatives using waterway and roadway modes are also under study.

International shipments will be made on break bulk ships, specially designed for pulp, with a capacity of 50,000 to 80,000 tons per trip.

Leading the planning and implementation of this structure is Alberto Pagano, logistics director at Arauco in Brazil, a professional with experience at Bracell, Fibria, and Votorantim Celulose e Papel.

Industrial Complex and Energy Self-Sufficiency

The Project Sucuriú occupies an area of 3,500 hectares, 50 kilometers from the center of Inocência and along the banks of the Sucuriú River, and relies on Industry 4.0 technologies — with digital control systems, training simulators, and total integration between production and quality stages.

The plant will operate in a closed energy cycle, with a generation capacity exceeding 400 megawatts (MW), of which 200 MW will be allocated for internal consumption.

The surplus — sufficient to supply a city of over 800,000 inhabitants — will be injected into the national energy system.

Jobs and Regional Impact

During construction, Arauco expects to create 14,000 direct and indirect job opportunities.

After operations begin, the project will maintain about 6,000 permanent jobs in the industrial, forestry, and logistics sectors.

The company has 400,000 hectares of planted eucalyptus forests to supply the unit.

According to the company, all project phases follow environmental monitoring protocols, with mapping of native species and priority areas for conservation.

Arauco states that Sucuriú represents the largest investment in the company’s history and reinforces its position among the global leaders in pulp, wood products, and bioenergy.

Transformation in the Heart of the Country

In addition to increasing the Chilean presence in the Brazilian forestry sector, the venture is expected to boost the regional economy, generating increases in income, tax revenue, and attraction of new investments in infrastructure, transport, and energy.

For the government of Mato Grosso do Sul, the project consolidates the state as one of the main global pulp hubs, alongside Três Lagoas, where units of Suzano and Eldorado Brasil already operate.

With the Project Sucuriú, Brazil is set to reinforce its position as the second largest global exporter of pulp, trailing only Canada, with competitive advantages in cost, forest productivity, and sustainability.

World’s Largest Pulp Mill to Be Operated in Brazil: $4.6 Billion Project Will Have 100-Car Train on 1,050 km Route, Producing 3.5 Million Tons and 400 MW of Clean Energy

Billion-Dollar Project in Mato Grosso do Sul Advances with Pulp Mill in Single Phase, Long-Distance Train to Santos and Own Clean Energy Generation. Exports Reach Three Continents with Record Annual Volume and Automated Industrial Operation.

Logistical Challenge of 1,050 Kilometers

Industrial Complex and Energy Self-Sufficiency

Jobs and Regional Impact

Transformation in the Heart of the Country

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