With a ceremony held in the city of Inocência, in the state of Mato Grosso do Sul, the forestry subsidiary officially kicked off construction of the Sucuriú Project, its first pulp mill in Brazil and the largest investment in the company’s history. The event was attended by Brazil’s acting president, Geraldo Alckmin, along with several authorities.

With an investment of US$4.6 billion, the new plant will have the capacity to produce 3.5 million tons of pulp per year and is expected to begin operations in late 2027.

“Brazil offers a number of very attractive natural conditions: trees grow very quickly, land is available, and it has a very strong industrial manufacturing culture. Brazil was a natural step,” said Cristián Infante, CEO of Arauco.

The plant will be built on a 3,500-hectare site, with more than 4.8 million m² of built area and state-of-the-art technology for pulp processing and power generation. During its construction, more than 14,000 direct jobs will be created and, once operational, around 6,000 people will work in the industrial, forestry, and logistics areas.

“We are a global company that seeks to generate economic value while respecting nature and the well-being of communities. With this project, we are promoting a safe, inclusive, and collaborative environment that will drive positive transformation for Mato Grosso do Sul,” said Infante.