Arauco’s Brazilian pulp mill reaches 81% completion

The company says the Sucuriú project is 6% ahead of schedule, with the Mato Grosso do Sul plant expected to start operating in late 2027.

Construction of Arauco’s pulp mill in Inocência, in Brazil’s Mato Grosso do Sul state, is about 81% complete and 6% ahead of schedule, company sustainability and institutional relations director Theófilo Militão told CNN Brasil. He said the margin built into the schedule should help preserve the planned launch date in the final quarter of 2027.

The Sucuriú project is valued at US$4.6 billion. The plant is designed to produce up to 3.5 million tonnes of short-fibre pulp a year. It is being built on a 3,500-hectare site about 50 kilometres from central Inocência, beside the Sucuriú River. The company expects production to reach full capacity during 2028.

Arauco is also developing the forest base that will supply the mill. Militão said the wood needed for the first years of operation is already secured and the full forest base is expected to be consolidated in 2027. The company is building a rail spur that Militão described as the country’s first shortline under the new railway regulatory framework. It is expected to be ready in the first half of 2027, before the mill opens.

Militão said the combination of a dedicated wood supply and rail transport should support the project’s competitiveness. He cited Brazil’s roughly 11 million hectares of planted forests and said Arauco is not currently concerned about competition for wood in the region, where major producers have their own forest bases.

Workforce training is another preparation for the start of operations. Militão said Arauco is combining recruitment of experienced specialists with training for new workers. The company says the project remains within its established milestones.