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Arauco: "In Brazil, environmental authorities and regulators work with you. They are not against you"

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• The Chilean forestry company announced its largest investment in history with the construction of a pulp plant in Brazil, highlighting competitive advantages and government support.

In a strategic move marking a milestone in its international expansion, Arauco, the Chilean forestry company, has decided to invest $4.6 billion in the construction of its first pulp plant in Brazil.

The Sucuriú project, located in the city of Inocência, in the state of Mato Grosso do Sul, represents the largest investment in the company's history and a clear example of its pursuit of efficiency and government support in the forestry sector.

Charles Kimber, Arauco's People and Sustainability Manager, explained the reasons behind this decision on CNN Chile's Agenda Económica. He stated that Brazil is not only the world's leading producer of short-fiber pulp but also offers significantly better eucalyptus growth conditions compared to Chile. While it takes 12 to 15 years to harvest a eucalyptus tree in its home country, this period is halved in Brazil due to favorable climate and soil conditions.

Additionally, Kimber highlighted the support of the governor of Mato Grosso do Sul in promoting industrialization and afforestation, aiming to turn the region into the "global capital of pulp." This strong forestry culture, where states compete to attract investments, contrasts with the situation in Chile, where, according to the executive, authorities do not facilitate the development of similar projects.

"In Brazil, environmental authorities and regulators work with you to obtain the necessary permits. They are not against you but ensure you meet all requirements from the start of the process," said Kimber. This collaboration is a key factor that has tipped the scales in favor of Brazil in Arauco's expansion strategy.

The investment in the Sucuriú project not only reflects Arauco's confidence in the Brazilian market but also highlights the differences in the business climate and government attitude toward the forestry industry between Brazil and Chile. With this plant, Arauco hopes not only to get closer to its competitors but also to enhance its ability to supply customers globally.