Arauco cellulose plant construction in Inocência reaches 81% completion

The construction of Arauco’s cellulose plant in Inocência, Mato Grosso do Sul, has reached approximately 81% completion, placing the project 6% ahead of its original schedule. The US$ 4.6 billion Project Sucuriú is expected to begin operations in the fourth quarter of 2027, with full capacity anticipated during 2028.

A key component of the project is a 47-kilometer railway branch connecting the factory to the Ferronorte line. This railway is expected to be operational by the first half of 2027. Notably, Arauco recently withdrew a lawsuit against the municipality of Inocência regarding a tax dispute. The company had sought a preliminary injunction to secure a 2% ISS (Service Tax) rate based on a 2022 municipal law, whereas the city was demanding a 5% rate. The legal impasse had previously threatened to delay the railway construction, which could have resulted in an extra R$ 12.6 million cost for construction firms.

The facility will be situated on 3,500 hectares near the Sucuriú River and is designed to produce 3.5 million tons of short-fiber cellulose annually. Arauco has also confirmed that the timber supply required for the initial years of operation is already secured.