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Arauco Permanently Closes El Colorado Sawmill in Curanilahue

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• The company suspends operations affected by structural competitiveness issues and logistical difficulties, impacting 78 workers.

In an unexpected turn for the forestry industry, Arauco announced this Friday the indefinite suspension of operations at its El Colorado sawmill, located in the town of Curanilahue, Biobío Region. This decision, following a shift reduction in April, stems from a combination of factors that have eroded the plant's competitiveness and profitability.

The company stated that the shutdown results from "increasing difficulties associated with operations," including supply issues and additional costs. Additionally, it noted that sales to low-value-added markets and "growing logistical challenges" have contributed to the current situation.

The context of violence in the province, marked by land seizures, occupations, timber theft, and fires, has severely impacted the raw material supply chain, exacerbating the company's challenges. As a direct consequence of the suspension, 78 sawmill workers have been laid off, adding to the region's economic and social concerns.

This is not an isolated case for Arauco, which had already suspended pulp production at its Licancel plant in the Maule region last September due to extreme climate variability and other disruptive events such as floods, droughts, and wildfires.

The news has resonated across the industry and local communities, highlighting the challenges facing Chile's forestry sector amid climate change and social tensions. The company has expressed its commitment to seeking sustainable solutions, but for now, the future of the El Colorado sawmill and its workers remains uncertain.