Arauco Planning New 1.3 Million Metric TPY Pulp Mill for Uruguay

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Celulosa Arauco y Constitucion SA, Chile, is developing plans for a new pulp mill in Uruguay, according to a Fox Business report this week. Arauco reportedly will develop and operate the mill through a joint venture with Stora Enso of Finland. Arauco, a subsidiary of fuel and forestry conglomerate Empresas Copec SA, would have access to as much as 50% of the mill’s production, while Stora Enso would have access to the rest, according to the news report.

The new mill would cost some $500 million and would have a production capacity of 1.3 million metric tpy. Production would be aimed primarily at Europe, but other export markets are expected to develop due the facility’s large production capacity. Technical studies and government work are currently underway for the expansion project, which will be presented to Arauco’s board of directors by year’s end.