ARAUCO’s Board Approved Construction of the Sucuriú Project

With an investment of approximately US$ 4.6 billion, the largest in the company’s history, the operation will have an annual production capacity of 3.5 million tons. ARAUCO has chosen the Finnish company Valmet as its technology and equipment partner for the installation of its first pulp mill in Brazil.

A global leader in pulp, wood products, forest management, and bioenergy, ARAUCO takes another strategic step towards the realization of the Sucuriú Project, the largest investment in the company’s history. Along with the Board’s approval to move forward to the construction phase, the company announces the Finnish company Valmet as the main supplier of technology and equipment for the installation of its first pulp mill in Brazil, which will be built in the city of Inocência, in the State of Mato Grosso do Sul.

A global developer and supplier of technologies and services for the pulp, paper, and energy sectors, Valmet will supply ARAUCO’s future plant with an integrated production line of the highest technology, with an annual capacity of 3.5 million tons of pulp. The operation includes automated systems designed to maximize energy efficiency, reduce operating costs, optimize performance, and minimize waste generation and greenhouse gas emissions, in line with the most stringent environmental standards available worldwide.

For Carlos Altimiras, President Director of Arauco do Brasil, “this is a decisive stage of the Sucuriú Project, which will feature cutting-edge technology in automation and environmental efficiency. Additionally, it is the largest pulp production project in the world implemented in a single stage and doing it with Valmet reflects the importance for ARAUCO of working with partners who share the same vision in innovation and sustainability.”

Eduardo Riedel, governor of Mato Grosso do Sul, stated that “this is a very important milestone in the process of growth and strengthening of the State and consolidates ARAUCO’s commitment to Mato Grosso do Sul, as it is one of the largest pulp mills in the world. It will be a modern facility that will generate employment and opportunities for social and economic development. Mato Grosso do Sul has established a sustainability strategy based on attracting large investments, and the arrival of this operation reinforces investors’ confidence in our State.”

Industry 4.0 and Sustainability

With a highly digitized design, the Sucuriú Project is structured with Industry 4.0 technology, with advanced process controls and simulators for operational training. Integrated connectivity throughout the entire production process – from wood processing to pulp quality control – will deliver high standards of safety, decision-making optimization, and efficiency in the use of natural resources.

In addition to the usual areas for pulp manufacturing, the complex will have a Gasification Plant that will generate biofuel to supply the operation’s lime kilns, replacing the use of fossil fuels. It will also have the largest Chemical Recovery Boiler in the industry and a Biomass Boiler, responsible for generating clean energy from the reuse of process waste, under a circular economy logic.

The energy generated will be more than 400 megawatts (MW) of electricity, of which about 200 MW will be used for the internal consumption of the industrial unit. The energy surplus, enough to supply a city of more than 800,000 inhabitants, will be made available to the national grid. All these practices reaffirm ARAUCO’s commitment to circularity and sustainability.

“This investment represents a milestone for the industry. We are proud to have been selected as ARAUCO’s partners for this important project. We are committed to ensuring excellent performance of this future plant, which will be a benchmark for Valmet’s sustainable technologies,” said Thomas Hinnerskov, CEO of the renowned Finnish company.

Progress of the Sucuriú Project

Located 50 kilometers from the urban center of Inocência (MS), the Sucuriú Project involves an investment of approximately US$ 4.6 billion. Since the signing of the Agreement between the Government of Mato Grosso do Sul and ARAUCO in 2022, the project has been advancing in its environmental approvals and is currently in the earthmoving stage, which involves preparing the area where the factory will be built starting in 2025. The plant is expected to start operating in the second half of 2027.

The projection is that the Sucuriú Project will generate around 14,000 jobs at the peak of construction, in a staggered manner. “This is a large-scale project that will drive social and economic development in the region, with increased job creation and income, higher tax revenue, and attraction of new investments,” Altimiras emphasized.