1. Home
  2. / Economy
  3. / Small city in the Brazilian Midwest becomes the target of a R$ 23 billion megafactory, construction reaches nearly 60 percent and could create the largest single line in the world during construction with a peak of 14,000 workers.
Reading time 4 min of reading Comments 0 comments

Small city in the Brazilian Midwest becomes the target of a R$ 23 billion megafactory, construction reaches nearly 60 percent and could create the largest single line in the world during construction with a peak of 14,000 workers.

Written by Noel Budeguer
Published on 05/05/2026 at 06:27
Be the first to react!
React to this article

The construction of a megafactory worth R$ 23 billion in Inocência, Mato Grosso do Sul, has placed a small town at the center of one of the country’s largest industrial bets.

The Projeto Sucuriú, led by Arauco, is progressing with a forecast of gathering up to 14,000 simultaneous workers at the peak of the construction. This movement is already affecting housing, commerce, transportation, services, and the local routine.

The scale is impressive because the unit was planned to produce 3.5 million tons of cellulose per year, a volume that could make the factory the largest in the world in a single line.

Billion-dollar project transforms Inocência into a new industrial hub of Mato Grosso do Sul

Inocência has taken on a strategic place on the Brazilian industrial map with the arrival of one of the largest private projects underway in the country. The city is receiving workers, suppliers, accommodations, and support structures at an accelerated pace.

Arauco’s investment is estimated at US$ 4.6 billion, a value close to R$ 23 billion according to the market conversion used. The structure involves a factory, forest base, logistics, energy generation, and integrated operation.

This set creates an impact that goes beyond the construction site. The local economy starts to feel an increase in demand for lodging, food, transportation, commerce, and services linked to the new production chain.

Construction nears 60% completion and approaches the most intense phase

Workers operate at the construction site of the cellulose megafactory, in a billion-dollar project advancing in the Midwest and expected to peak at 14,000 people during construction.

The project has already passed halfway and is approaching a stage of greater mobilization on the site. The advancement close to 60% indicates that the project has moved past the initial phase and entered a decisive moment for the factory’s implementation.

According to Reuters, the construction is ahead of schedule and aims for full operation in 2028.

This pace increases expectations in the cellulose sector and heightens pressure on regional infrastructure. The more the project advances, the greater the movement of people, companies, and services around Inocência tends to be.

Peak of 14,000 workers pressures local housing, services, and commerce

The forecast of up to 14,000 simultaneous workers at the peak of construction shows the scale of the change underway. For a smaller city, this volume represents a rapid urban transformation that is hard to ignore.

The demand for houses, hotels, restaurants, transportation, health, commerce, and local labor grows along with the project’s progress. The movement opens opportunities but also requires adaptation from companies, residents, and public authorities.

After the construction phase, the forecast is for 6,000 jobs linked to industrial, forestry, and logistics areas. This indicates that a significant part of the economic impact should continue even after the factory’s delivery.

Capacity of 3.5 million tons per year could surpass world record

The main differential of Projeto Sucuriú lies in its production scale. The factory was planned to reach 3.5 million tons of cellulose per year in a single industrial line.

This volume surpasses the capacity of the Suzano unit in Ribas do Rio Pardo, also in Mato Grosso do Sul, which produces 2.55 million tons annually and was presented as the largest single-line cellulose factory in the world.

With Arauco’s new plant, Mato Grosso do Sul could host two industrial structures of global reach in the same sector. This scenario strengthens the state’s position in cellulose production and export.

Suzano unit in Ribas do Rio Pardo has a capacity of 2.55 million tons per year and serves as a reference for the scale that the Projeto Sucuriú aims to surpass.

400 MW of clean energy boosts project scale

The plant was also planned to be energy self-sufficient with about 400 MW of clean energy. Part of this generation is expected to come from the reuse of biomass produced in the industrial process itself.

In practice, waste and by-products from production help power the plant’s operation, reducing reliance on external energy. This model increases industrial efficiency and improves the project’s competitiveness.

The structure also involves eucalyptus management, environmental monitoring, and actions related to fauna and vegetation. In a project of this size, these points are part of the necessary foundation to keep the operation within legal and environmental requirements.

Mato Grosso do Sul gains strength on the global cellulose map

Arauco’s advancement reinforces an economic shift that was already taking shape in the state. Mato Grosso do Sul is no longer seen merely as an agricultural and livestock powerhouse and has begun to compete for space among the largest global cellulose hubs.

The combination of planted forests, logistics, resource availability, and major investments has placed the region on another level. The arrival of a plant of this size further accelerates this transformation.

With the Sucuriú Project, Inocência becomes part of a chain that moves billions, attracts suppliers, and changes the productive profile of the region.

The mega-factory brings together R$ 23 billion in investment, 14,000 workers at the peak of construction, and a capacity of 3.5 million tons per year. The sum of these factors places the project among the most relevant in recent Brazilian industry.

If the schedule progresses as planned until 2028, Mato Grosso do Sul should consolidate an even stronger leadership in the sector. The new scale of Brazilian cellulose repositions the state on the global map.

Sign up
Notify of
guest
0 Comments
most recent
older Most voted
Built-in feedback
View all comments
Noel Budeguer

I am an Argentine journalist based in Rio de Janeiro, focusing on energy and geopolitics, as well as technology and military affairs. I produce analyses and reports with accessible language, data, context, and strategic insight into the developments impacting Brazil and the world. 📩 Contact: noelbudeguer@gmail.com

Share in apps
0
I'd love to hear your opinion, please comment.x