Business / Published September 12, 2023

ARAUCO indefinitely suspends operations at Licantén pulp mill

Despite the efforts and adjustments in recent times, the subsidiary suspended operations due to several reasons related to climate variability, with consecutive flooding of the Mataquito River this winter, extreme periods of drought that caused repeated halts in the mill’s operations in previous summers, and high-impact forest fires which, together with the lack of a public policy to promote reforestation over the last decade, have led to a low availability of wood for industrial use.

The firm has an exit plan in place that seeks to generate the least possible impact on the 163 direct workers and contractors who provide services. Likewise, the municipal and regional authorities have been informed of this decision and together with them the subsidiary will continue helping with the recovery of Licantén after the floods suffered in the last few months.

The Licantén mill has an installed annual production capacity of approximately 160,000 tons of raw pine pulp, which corresponds to 3% of Arauco’s total capacity and 1.7% of the company’s total revenues for the year 2022.