Arauco Invests $4.6 Billion in Brazil, โCites Permitting Hurdles in Chile
EREDE, CHILE โ- Arauco, one of the world’s leading wood pulp producers, is significantly โคexpanding its operations โin Brazil with a new โค$4.6 billion pulp โplant in โMato Grosso do โคSul state, a โmove executives subtlyโฃ contrastedโค with increasing difficulties securingโค permits for projects in Chile. The investment,โ exceeding the $3 billion spent on arauco’s Mapa plant in โคArauco, Chile,โ signals a strategic โขshift towards a more โคfavorable regulatory โenvironment.
The new Brazilianโฃ facility, boasting a 3.5 million ton capacity, comes as Arauco navigates โprotractedโข permittingโข processes for projects within Chile, including itsโ $300 million “Viento Sur” wind project – stalled in the judicialโฃ phase โฃafter six years despite having environmentalโ qualification alreadyโ approved. CEO Cristian Infante recently acknowledged the demanding, yet cooperative, nature of Brazilian authorities, a โฃstark contrast too โwhat he implied were โฃobstructiveโค bureaucratic processes elsewhere.
“it is notโ that one leaves Chile,but that one looks โforโข ways to compete,” stated Vice President of Forestry andโค Pulp,Patricioโ chamorro,during a recent event in Erede.โ “We have toโ find the best conditions.”
Chamorroโค also highlighted logistical disadvantages โin Chile, noting thatโ Chilean trucks carry significantly less weight (45 tons) comparedโ to neighboring countries (60-75โฃ tons), impacting competitiveness.He further pointed toโ the impact of recentโฃ forest fires and a lossโ of 300,000โ hectares of forest landโ in the lastโฃ five years, leading toโ the closure of โขtwo Arauco โฃsawmills and two pulp factories โขin the Maule region.
“Itโ cannot โขbe that all projects in โChile end in justice,” Chamorro emphasized, calling for greater trust inโข the Ministry of the environment’sโ permitting process.He indicatedโ that any future proposal to โthe Chilean government would focus on promoting theโ forestry industry and increasingโข the national forest mass.