Sponsors
Arauco Secures Historic Financing to Build the World's Largest Pulp Mill in Brazil
Sponsors
Chilean forestry company Arauco, part of the Angelini Group, has secured unprecedented financing of US$2.22 billion for the development of the Sucuriú Project, to be built in the municipality of Inocência, in the state of Mato Grosso do Sul, Brazil. The mill aims to become the largest in the world built in a single phase, with an operational model based on sustainability, bioenergy, and regional development.
The financing was structured in two blocks: US$1.25 billion from a credit led by IDB Invest and the International Finance Corporation (IFC)—the World Bank’s arm—and US$970 million in export credit backed by the Finnish agency Finnvera. The operation was globally coordinated by J.P. Morgan, with the participation of eight other international banks.
“Sucuriú represents much more than a historic investment; it is a commitment to sustainable development, industrial innovation, and the creation of shared value in a region with enormous potential,” stated Arauco’s CEO, Cristián Infante, who highlighted the confidence of multilateral stakeholders in the company’s long-term vision.
A World-Scale Mill
The project will have a production capacity of 3.5 million tons of pulp per year, supplied by 400,000 hectares of certified eucalyptus plantations. Its construction phase will generate around 14,000 temporary jobs, while in stable operation it will create 6,000 direct and indirect jobs, decisively impacting the social and economic development of the area.
A key component of the project will be bioenergy generation: the mill will produce up to 400 MW of renewable energy from forest biomass, 45% of which will be fed into Brazil’s electrical grid, reinforcing the country’s energy diversification and transition strategy.
Regional Transformation and Global Standards
The state of Mato Grosso do Sul and particularly the municipality of Inocência are poised to be the major beneficiaries of this industrial venture, consolidating their role as a forestry hub and export platform. According to international experts, Brazil is currently the world’s most competitive country in pulp production, reinforcing Sucuriú’s global projection.
The financing also includes stringent international environmental and social standards, as well as technical advisory on climate and community matters, a condition established by organizations such as IFC and IDB Invest to ensure the expansion is carried out under global sustainability criteria.
With this operation, Arauco sets a new milestone in the global forestry industry and positions Chile as a key player in the development of large-scale, high-innovation projects in Latin America.
