Arauco Sucuriú Project development

Arauco is advancing its Sucuriú Project, which involves the construction of a new cellulose factory in Inocência, Mato Grosso do Sul. The US$ 4.6 billion project is currently approximately 81% complete, placing it 6% ahead of its original schedule. The facility is expected to begin operations in the fourth quarter of 2027, with full capacity anticipated during 2028.

At the 58th ABTCP International Cellulose and Paper Congress, Arauco showcased the project’s progress through immersive virtual experiences. The company highlighted technological integration centered on Industry 4.0 and 5.0 concepts, spanning forestry advancements—such as silviculture and the use of biocontrolers—to industrial operations and logistics. Social development initiatives in the region continue to focus on education and professional training.

Infrastructure development includes a 47-kilometer railway branch connecting the factory to the Ferronorte line, which is expected to be operational by the first half of 2027. To avoid potential delays and an estimated R$ 12.6 million in extra costs for construction firms, Arauco recently withdrew a lawsuit against the municipality of Inocência regarding a tax dispute over the Service Tax (ISS) rate.

The plant, situated on 3,500 hectares near the Sucuriú River, is designed to produce 3.5 million tons of short-fiber cellulose annually. Arauco has confirmed that the timber supply required for the initial years of operation is already secured. Additionally, the company has invested R$ 1 million in selective waste collection equipment for a future Waste Sorting Unit (UTR) to manage environmental impact.