Largest investment in Arauco’s history signed off

Arauco’s Board of Directors approved the modernization and extension of the Arauco Mill, an initiative that involves a US$2,350 million investment, the largest investment in the company’s history.

At the production level, the project includes the termination of line 1, the modernization of current production line 2 and the construction of a new production line (Line 3), with an annual capacity of 1,560,000 tons, increasing annual pulp production at the complex by an estimated 2,100,000 tons.

In addition, project MAPA (Spanish acronym for Modernization and Extension of Arauco Mill project) will allow the company to continue to generate clean and renewable energy from forest biomass, due to the construction of a new cogeneration boiler. In addition to supplying clean energy to the mill, an energy surplus of 166 MW will be delivered to the National Electrical Grid, through a power line whose construction is part of the project.

Also included in the project is the implementation of a training and education program to support the creation of about 4,000 to 5,000 jobs during construction work, with a maximum of 8,000. Once construction is over, an estimated 1,000 job positions will be created, mainly in services and forestry activities. The purpose is to contribute to employment and invigorate local economy and development.

Additionally, the project includes a new wastewater treatment system that started construction in 2015, with an additional investment of US$120 million. This system is 99% completed and will provide service to the current facilities and future line 3.

Charles Kimber, Arauco’s Senior Vice-President of Commercial & Corporate Affairs said, “we’re very proud of this project’s materialization, because it accounts for the extensive and positive work that we’ve developed with the community and authorities”.

“This is an enormously relevant project for the country and the Biobío Region, which will modernize and increase the production efficiency of our facilities. It will also strengthen the competitiveness and leadership of Arauco and Chile in global markets”.

In addition, he said, “this project involves the largest investment program in the history of ARAUCO and we’ll develop it precisely in a commune where we maintain a very strong and long-lasting relationship, because this is where this company started”. This US$2,350 million investment is estimated to be operational in late March 2021.

Source: Celulosa Arauco y Constitucion SA




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