Arauco and the Hurdles to Invest: While Chile Takes Time for One Permit, Brazil Launches 3 Projects

From the Angelini group's forestry giant, Arauco, they commented on the competitiveness issues Chile has fallen into due to permit bureaucracy.

While its megaproject Sucuriú in Brazil—with an investment of US$4.6 billion—has already reached 60% progress just 13 months after starting construction, the company recalled the bureaucracy of its MAPA project

in the Bío Bío region, which took 14 years from its presentation to its start-up.

The "permit bureaucracy" gap

Cristián Infante, general manager of Arauco, spoke with Diario Financiero and was emphatic in contrasting the agility of both countries: in Brazil, permits can be obtained in 18 months; in Chile, the same process can take 8 years.

"The difference is not that one country is more lenient; it's that in Brazil, deadlines are met, projects are not litigated, and the authorities seek solutions so they come out in a reasonable time," Infante stated.

In addition to administrative slowness, he said that structural and legislative problems have been added, which, according to the executive, prevent new large-scale investments in the national territory.

In that context, and regarding raw materials, he noted that the planted area in the southern macrozone has fallen from 2.4 to 1.9 million hectares due to insecurity; and without sufficient wood, it is not viable to project new plants.

Advertisement

"(…) Today in Chile there is no wood to build a new plant, as a result of what has happened in the southern macrozone, between wood theft and attacks. (…) Unfortunately, supply has been reduced, which limits the ability to grow in large projects. If there were wood in Chile, we would certainly consider the possibility of building a plant here in the future," explained Arauco's general manager to the aforementioned media.

Additionally, Infante criticized measures like the 40-hour workweek, arguing that increasing labor costs "by decree" makes Chile less attractive compared to other investment destinations.

The company had a difficult 2025, where the drop in pulp prices caused a 91% plunge in its profits.

Despite the critical diagnosis, the manager valued that the current government prioritizes security and economic growth because for Arauco, he said, recovering security is vital for assessing business risks, while growth is "the only way" for social well-being.

Finally, Infante emphasized in his conversation with Diario Financiero that Chile has competitive advantages such as technology and port proximity, trusting that political will and legal certainty are key to capitalizing on local potential.

Source:Biobiochile