Chilean Arauco to Launch the Groundbreaking of Its New Pulp Mill in Mato Grosso do Sul, Strengthening Economy, Jobs, and Sustainability.
The city of Inocência, in Mato Grosso do Sul, is preparing for a major economic leap with the groundbreaking of Arauco’s new pulp mill. The event, scheduled for April 9, will feature the presence of political and business leaders.
This project, called Project Sucuriú, represents a milestone for Arauco in Brazil, consolidating its operations in the pulp sector with a significant investment.
Arauco’s Industrial Expansion
With an investment of US$ 4.6 billion, Arauco’s new pulp mill will have an annual production capacity of 3.5 million tons of short-fiber pulp.
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The facility will be situated on a 3,500-hectare area, located 50 km from the center of Inocência. Since June 2024, construction work has been underway, involving thousands of workers in the initial stages of construction.
The expectation is that, at the peak of construction, around 14,000 workers will be involved. After operations begin, expected in 2027, Arauco’s pulp mill is anticipated to generate approximately 6,000 direct and indirect jobs, boosting the local economy and driving sectors such as transportation and logistics.
Job Creation in the City
The arrival of Arauco’s new pulp mill is transforming the population dynamics of Inocência. According to Mayor Antonio Ângelo Garcia dos Santos, the population growth could reach 32,000 people during the construction phase. After the project’s completion, it is estimated that the city will have between 18,000 and 22,000 permanent residents.
To support this evolution, Arauco is allocating R$ 85 million for a Socio-Environmental Strategic Plan (PES), which includes improvements in urban infrastructure, as well as investments in education, health, and public safety.
This plan will be developed in partnership with the private sector and local authorities, ensuring sustainable growth in the region.
Sustainability and Technology
Arauco’s new pulp mill will be an example of energy efficiency and sustainability. Its production process will fully utilize the byproducts of the industry, minimizing waste.
Additionally, the plant will have a power generation capacity of over 400 megawatts (MW), with half of this volume being made available for the national energy system, contributing to the supply of large urban centers.
Another highlight is Arauco’s environmental commitment, which will implement detailed monitoring of local biodiversity. This effort includes cataloging native species and defining priority areas for conservation, reinforcing the company’s commitment to sustainability.
Get to Know Arauco
Arauco is a multinational with over 50 years of history in the forestry sector. Founded in Chile, the company has expanded its operations globally, standing out in the production of wood, panels, pulp, and renewable energy.
The company constantly seeks innovation and sustainability in its processes, ensuring high-quality products for various segments of the industry. Present in several countries, Arauco holds a prominent position in the wood panels and pulp sector.
Its commitment to sustainable development and socio-environmental responsibility are fundamental pillars of its business strategy. The new pulp mill in Brazil reinforces this positioning, contributing to the advancement of the industrial and economic sector of the country.

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