Valmet to supply key pulp mill technology for Arauco pulp mill project
Valmet has signed a letter of award (LoA) with Arauco to supply key pulp mill technology including pulp drying and baling, a recovery boiler and a biomass boiler. This LoA is part of ARAUCO's MAPA project, a major investment to expand current production capacity and build a new pulp production line at the Arauco Mill located in the Bio Bío Region in Chile.
The value of the anticipated delivery will not be disclosed. However, a project of this size and scope is typically valued at EUR 250-300 million. The order is expected to be included in Valmet's fourth quarter 2018 orders received.
"With this project ARAUCO continues our long cooperation in the area of boilers and pulp drying. Our cooperation extends over 15 years of successful project deliveries," says Bertel Karlstedt, Business Line President, Pulp and Energy from Valmet.
The delivery of the pulp drying and boilers is agreed to be done on EPS basis including plant engineering, procurement and supervision. The pulp drying line will have a daily capacity of 5,000 air dry tons (Adt). The recovery boiler will have a daily capacity of 6,300 tons dry solids (tDS). The biomass boiler features bubbling fluidized bed technology and has a capacity of 160 MWth.
The modernization and extension of Arauco Mill, an initiative that involves a USD 2,350 million investment, is the largest investment in ARAUCO's history. The project includes a new pulp production line, line 3, with an annual capacity of 1,560,000 tons. The new line is estimated to start operation in 2021.