Brazil's Arauco Sucuriú Pulp Mill Progresses

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Researched by Industrial Info Resources (Sugar Land, Texas)--Construction of Arauco's Sucuriú pulp mill in Mato Grosso do Sul, Brazil, is approximately 81% complete, up from 58% in May, and is running about six percentage points ahead of schedule. Site preparation began in 2024, and the project is now in its peak construction phase, focused on mechanical and electrical installation.

The US$4.6 billion grassroot mill is located on a 3,500-hectare site along the Sucuriú River, about 50 kilometers from the center of Inocência. Once operational, it will produce 3.5 million tonnes per year of short-fiber pulp, making it the world's largest pulp mill built in a single phase. It is Arauco's largest investment to date and its first pulp mill in Brazil. Construction is expected to employ more than 14,000 workers at its peak, and about 6,000 permanent positions in industrial, forestry, and logistics roles will be created once the mill is operating.

Start-up is scheduled for the fourth quarter of 2027, with the mill expected to reach full capacity during 2028 following commissioning and ramp-up. The site will include a 400-megawatt power unit, with surplus power to be sold to the grid. A rail spur, the first shortline built in Brazil under the country's new railway framework, is scheduled to be in service in the first half of 2027, ahead of mill start-up. Wood supply for the first years of operation is secured, and the full forest base is expected to be consolidated during 2027.

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