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Arauco $2.1 Billion Expansion of Chile Mill Would Boost Pulp Production 40%

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Celulosa Arauco y Constitucion, Chile, is exploring the expansion of its wood pulp production by more than 40% with a newly approved $2.1 billion expansion project at its Arauco mill in southern Chile. The project will expand the mill’s production to 2.1 million metric tpy.
The project, called the Proyecto Modernización y Ampliación Planta Arauco (MAPA), involves the suspension of Arauco mill's 280,000 metric tpy eucalyptus production line, a modernization of the 506,000 metric tpy pine line, and construction of a third 1.56 million metric tpy line, according to Reuters.
"Today Arauco's wood pulp production is 3.15 million metric tpy and MAPA will add a net 1.3 million metric tpy," the company said, but did not provide a time frame for completion of the expansion.
Arauco, the wood pulp and forestry arm of industrial conglomerate Empresas Copec, has been pumping cash into expansion projects and acquisitions in Brazil, Canada, Chile, the U.S. and Uruguay, according to the Reuters report. The $2 billion Montes de Plata eucalyptus pulp mill in Uruguay, a joint-venture between Arauco and Stora Enso, is due to start production this year.


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