Chilean Pulp and Wood Company Arauco Reviews Sawmill Construction

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Researched by Industrial Info Resources (Sugar Land, Texas)--Arauco (Santiago, Chile) has permit approval and is reassessing the viability to develop a sawmill in Paillaco (Region de Los Rios, Chile). The total investment cost of the project is estimated at $200 million.

The project involves the construction of a 67,220-square-meter sawmill, the installation of processing equipment to process 50,000 cubic meters of wood, and a cogeneration facility to provide power to the plant. The complex will be equipped with one biomass-fired boiler, which has a capacity to produce 210 tons of vapor per hour to drive a 40-megawatt (MW) steam turbine, debarker, bark Hog, conveyors, head rig, carriages, and band saws, among others.

The chosen site for the sawmill to be erected is 8 kilometers from Paillaco and 1.5 kilometers from Pichi Ropulli, another town in Region de los Lagos.

The company expects to release bid documents for engineering firms by the second quarter of 2010. Infrastructure construction will to start in the fourth quarter of 2010, and the facility is scheduled to be operational by the fourth quarter of 2011.

Separately, Arauco and Finnish-Swedish Stora Enso (OTC:SEOAY) (Helsinki) have capital approval and are jointly selecting a site to build a grassroot pulp mill in Uruguay. For more details, view November 16, 2009, article - Arauco, Stora Enso to Select Site for Grassroot Biomass-Fired Pulp Mill in Uruguay.

Arauco is one of the largest forestry companies in Latin America. It commercializes and produces kraft woodpulp, sawn timber and panels. The enterprise currently exports products to more than 50 countries worldwide.

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