Once operational, this facility is expected to be the world’s largest single-phase pulp manufacturing plant, marking Arauco’s first major investment in Brazil and boasting an anticipated annual output of 3.5 million tons of short-fiber pulp sourced from sustainably managed eucalyptus plantations.
Construction of the state-of-the-art mill commenced in 2025, with operations slated for late 2027. Upon completion, the project will not only bolster regional economic development through job creation and infrastructure improvements but will also contribute to Brazil’s renewable energy capabilities.
Expected to create approximately 14,000 temporary jobs during construction and 6,000 permanent jobs during operations, the facility will also boast reduced water consumption, low emissions technology, and a biomass-fueled lime kiln, enabling the plant to generate more than 400 MW of renewable power, of which up to half will be supplied to the national electric grid. Moreover, the socio-environmental plan will channel resources into health, education, housing, and conservation, ensuring lasting prosperity and a higher quality of life for the region.
The sophisticated financing package comprises a USD970 million loan provided by J.P. Morgan SE, Crédit Agricole Corporate and Investment Bank (CACIB), The Hongkong and Shanghai Banking Corporation Limited (HSBC), and Banco Santander, S.A. (Santander), guaranteed by Finnvera plc, the Finnish export credit agency, and a USD1.225bn A/B loan arranged by IDB Invest and IFC, with participation from B Lenders including JPMorgan Chase Bank, N.A., Bank of China, HSBC, Santander, BBVA, Bank of America, CACIB, and China Construction Bank, with JPMorgan Chase Bank acting as Global Coordinator.