Chilean Pulp & Paper Company Arauco Forced to Close Saw Mill in Argentina

---

Español

Researched by Industrial Info Resources (Sugar Land, Texas)--Pulp, Paper & Wood producer Celulosa Arauco (Santiago, Chile) has decided to permanently shut down the Puerto Piray saw mill for economic reasons. The sawmill is located in Misiones, Argentina. A final decision on the closure date will be made in the first quarter of 2011.

The company's decision was made because of the weakness in the plywood and timber markets following the global economic crisis of 2008, as well as decreased demand for wood products, especially from the United States, which has experienced a substantial decline in housing construction.

The closure will cost the company about $1.5 in lost production stock. The facility currently has 50,000 cubic metres of pine wood in storage, which will not be sold. According to company officials, the mill will serve as a storage and distribution center in the future. Employees will be relocated in other operating mills acording to their skills and competences, and no layoffs will occur.

The Puerto Piray saw mill began operations in 1996 and produces 90,000 cubic meters of pine wood annually. The facility employs about 200 people.

Celulosa Arauco is a Chilean company that produces and commercializes wood, pulp and paper products. The firm has production units in Chile, Argentina, Uruguay and Brazil.

View Plant Profile - 3003632

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.