Expansion of Arauco Pulp Mill, Chile

The Swedish Export Credit Agency (EKN) is considering a guarantee for financing of equipment and services to the modernisation and expansion of the Chilean company Celulosa Arauco y Constitutión S.A.’s (Arauco) production lines at the Arauco Pulp Mill in Horcones Industrial Complex, situated in Chile’s BioBío region.

Through adding a new hardwood pulp line with associated facilities and infrastructure, and modernising one existing pulp line, the capacity of the new plant will be augmented by 30 percent, resulting in a total production capacity of 2.1 million tonnes of bleached kraft pulp per year.

The Arauco Pulp Mill expansion and modernisation project has a preliminary classification as a category A-project. The potential environmental and social and impacts of the pulp mill expansion project relate to environmental management; occupational health and safety; sustainable forest management; and community impacts. Additional information on the social and environmental impacts is available in the following link: Servicio da Evaluación Ambiental

The information was published on EKN´s website www.ekn.se on the 17th of January 2019. Comments on the project can be made within 30 days. This procedure is in accordance with the OECD Recommendation on Common Approaches for ECAs.