The agreement was signed as part of the challenge of seeking new opportunities that will contribute to the development of the subsidiary and is an important preparatory step that will allow to continue the evaluation of building a new pulp mill in Brazil.

This initiative, called the “Sucuriú Project”, is subject to several variables that are under study, including market conditions, the environmental impact permit, evaluation of timber supply and the approval by the Board of Directors. If conditions permit, construction of this new mill may begin in 2025. The facility would have a production capacity of 2.5 million tons of short fiber and would be located 50 km from the town of Inocência, an area that offers a number of logistical benefits.

Brazil is an important center for the Company’s global strategy. ARAUCO has been operating in Brazil since 2002, since when it has made significant progress through its industrial facilities and forestry assets.