Valmet to Supply a Complete 3.5 Million tpy Pulp Mill to Arauco in Brazil
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The Board of Directors of Arauco have approved an investment of a complete pulp mill and selected Valmet as the supplier for the project. Valmet's scope will be the delivery of complete pulp mill including also full-scope automation and flow control solutions to Arauco.
According to Valmet, the new pulp mill will be the world's largest single-phase pulp mill project with 3.5 million tonne per year pulp production capacity.
The new mill is estimated to start-up in the second half of 2027.
The pulp mill will be built in Inocência, in the state of Mato Grosso do Sul, Brazil.
The contract is estimated to be finalized by the end of 2024, Valmet said.
The value of the order for Valmet is over EUR 1 billion, and it is expected to be included in Valmet's orders received for the fourth quarter 2024. The anticipated delivery will have an important employment impact on Valmet and its subcontractors especially in Brazil, Finland, Sweden, Denmark, India and China.
In June of 2022, Arauco moved forward with its intention to build the new pulp mill, signing a US$3 billion investment collaboration agreement with the government of Mato Grosso Do Sul in Brazil. Arauco has named the initiative "Project Sucuriú."
Cristian Infante, Global CEO of Arauco, said "This is an important and decisive stage of our Sucuriú Project, which will feature high expertise and state-of-the-art technology. As the world's largest single-phase pulp production project, our choice to partner with Valmet reflects Arauco's commitment to partnering with those who share our vision for innovation and sustainable practices."
Thomas Hinnerskov, President and CEO of Valmet, commented, "This investment is a significant milestone for the industry, and we are proud to be selected as the partner for Arauco in this major project. Arauco's new pulp mill will be the largest single-phase pulp mill project in the world and will be a showcase for Valmet's sustainable technologies. In addition, the mill will generate a significant amount of excess bioelectricity, contributing positively to the sustainable energy supply of the area."
