Licancel Mill Update

The storm in mid-August, which affected the central-southern area of our country, forced the Licancel pulp mill, located in Licantén, Maule Region, to be completely shut down on August 21st, 2023, due to the overflowing of the Mataquito River.

Arauco is currently reviewing the consequences and impacts of this force majeure event, quantifying the damages caused, and evaluating the future steps to be taken in relation to the plant itself.

Arauco acquired the Licancel plant in September 1999. The mill has an installed annual production capacity of approximately 160,000 tonnes of raw pine pulp, which corresponds to 3% of Arauco’s total annual pulp production capacity and 4.6% of total pulp sales by 2022.