araucoIIArauco invests in new pulp plant

The plant, which will be set up in the city of Valdivia, will allow the company to diversify its offering of forest products

Chilean forestry company Arauco, a subsidiary of industrial conglomerate Empresas Copec, will invest CLP 185 million to build a new cellulose and textile pulp plant, according to Reuters.

Arauco had been considering the plant for some time, but its construction faced a number of setbacks, such as a court battle with local indigenous communities.

“The production of textile pulp will allow us to diversify the type of product that we can offer to the world market. This type of pulp has various uses in the textile industry", said Charles Kimber, Arauco corporate and commercial manager.

Last week, Arauco reached an agreement to buy two wood panel plants in Brazil from competitor Masisa, in a deal worth CLP 100 million.

CW Group USA - 16 octubre 2017