What Makes This City of Less Than 9,000 Inhabitants Special Enough to Be Chosen for a R$ 25 Billion Pulp Mill That Will Create Approximately 20,000 Jobs?

Written by Romário Pereira de Carvalho

Published on 21/10/2025 at 10:35

Updated on 21/10/2025 at 10:36

Imagem: Divulgação

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With Investment of R$ 25.22 Billion and Generation of 20 Thousand Direct and Indirect Jobs, the Sucuriú Project Transforms Inocência into a New Global Hub for Pulp, with Clean Energy, Reforestation, and Sustainable Production

The municipality of Inocência, in the east of Mato Grosso do Sul, is about to undergo an unprecedented transformation. With only 8,700 inhabitants, the city was chosen by the Chilean multinational Arauco to host the Sucuriú Project — the largest single-stage pulp project in the world, valued at US$ 4.6 billion (approximately R$ 25.22 billion). The new plant promises to place the municipality at the center of global production in the sector. But why was this small town chosen?

Arauco’s decision to establish the factory in Inocência was strategic. The location is considered ideal due to its proximity to Goiás and the industrial hub of Três Lagoas, a region that has already established itself as a national reference in pulp production.

Another determining factor is the productivity of eucalyptus in the state: in Mato Grosso do Sul, the harvest cycle occurs in about seven years — almost half the time required in Chile. This makes cultivation more competitive and sustainable.

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Capacity and Execution Timeline

The Sucuriú Project will have an annual capacity of 3.5 million tons of pulp, consolidating Inocência as one of the largest producers on the planet.

Construction officially began in April 2025, with the groundbreaking ceremony, and is expected to continue until mid-2027.

During this phase, the focus will be on building the industrial plant, support areas, and logistics infrastructure.

According to the schedule, operations are expected to begin in the second half of 2027. Before that, technical tests and adjustments will be conducted to ensure production efficiency and safety.

“Obtaining the installation license is a fundamental milestone for the Sucuriú Project, as it allows us to move forward to the next critical stages to start building the plant,” stated Arauco’s CEO in Brazil, Carlos Altimiras.

He also highlighted the partnership with state and municipal governments, which he considered essential for the success of the venture.

Jobs and Impact on the Local Economy

The volume of investments and the scale of the project are expected to have a direct impact on the regional economy. It is estimated that, at the peak of construction, the site will employ around 14,000 people, boosting sectors such as hospitality, food, transportation, and commerce.

After the inauguration, approximately 6,000 permanent jobs will be maintained, strengthening the economy of the municipality and neighboring cities.

In addition to jobs, the factory will bring development in infrastructure and services. Arauco will also allocate 400,000 hectares of eucalyptus for raw material supply, ensuring forest self-sufficiency and supply security.

Clean Energy and Sustainability

Another highlight of the Sucuriú Project is the commitment to renewable energy. The new unit will be capable of generating 400 megawatts (MW) of clean energy, enough to power a city of 800,000 inhabitants.

Part of this electricity will be used in the plant’s own operations, while the excess will be integrated into the national electrical system, contributing to the country’s sustainable energy matrix.

During the ceremony commemorating the 48th anniversary of Mato Grosso do Sul, held on October 8, Arauco paid tribute to the State Government for its support of the project.

The Deputy Secretary Artur Falcette received the recognition on behalf of Governor Eduardo Riedel.

Also present were Mayor Antônio Ângelo (Toninho da Cofapi), company representatives, municipal secretaries, and regional entrepreneurs.

Recognition and Sustainable Legacy

On that occasion, Altimiras emphasized that the project symbolizes a new stage for the state, characterized by innovation and environmental responsibility.

Falcette praised Arauco’s approach, highlighting the integration of economic growth and environmental care.

“It is gratifying to see a company with clarity and genuine concern for natural resources and people. This is the foundation of the development we want for Mato Grosso do Sul,” stated the secretary.

Strategic City on the Pulp Map

With an area of 5,761 km² and an average altitude of 502 meters, Inocência has a privileged location for the transportation of production.

The city is located 337 km from Campo Grande and 737 km from Brasília, with easy access to highways and railroads that connect the state to national ports and logistics hubs.

This infrastructure reinforces the region’s potential to establish itself as a new hub in the “Pulp Valley.”

More than just a factory, the Sucuriú Project symbolizes the beginning of a new industrial era in Mato Grosso do Sul.

The billion-dollar investment, combined with the generation of clean energy, the expansion of reforestation, and the creation of thousands of jobs, transforms Inocência into a model of sustainable development and innovation in Brazil.

Key Numbers of the Sucuriú Project
Investment: US$ 4.6 billion (R$ 25.22 billion)
Capacity: 3.5 million tons/year
Jobs: 14,000 during construction and 6,000 afterwards
Eucalyptus Area: 400,000 hectares
Energy Generated: 400 MW
Start of Construction: April 2025
Operation: Second half of 2027
Location: Inocência (MS), 337 km from Campo Grande

With information from GMConline.

What Makes This City of Less Than 9,000 Inhabitants Special Enough to Be Chosen for a R$ 25 Billion Pulp Mill That Will Create Approximately 20,000 Jobs?

With Investment of R$ 25.22 Billion and Generation of 20 Thousand Direct and Indirect Jobs, the Sucuriú Project Transforms Inocência into a New Global Hub for Pulp, with Clean Energy, Reforestation, and Sustainable Production

Capacity and Execution Timeline

Jobs and Impact on the Local Economy

Clean Energy and Sustainability

Recognition and Sustainable Legacy

Strategic City on the Pulp Map

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What Makes This City of Less Than 9,000 Inhabitants Special Enough to Be Chosen for a R$ 25 Billion Pulp Mill That Will Create Approximately 20,000 Jobs?

With Investment of R$ 25.22 Billion and Generation of 20 Thousand Direct and Indirect Jobs, the Sucuriú Project Transforms Inocência into a New Global Hub for Pulp, with Clean Energy, Reforestation, and Sustainable Production

Capacity and Execution Timeline

Jobs and Impact on the Local Economy

Clean Energy and Sustainability

Recognition and Sustainable Legacy

Strategic City on the Pulp Map

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