Nouryon & Arauco ink long-term deal for $4.6 bn Brazil pulp mill

As part of the agreement, Nouryon will construct fully integrated sodium chlorate and chlorine dioxide manufacturing facilities in Mateo Grosso do Sul, leveraging its technology and integrated manufacturing model expertise to enhance its leading market positions in South America, particularly Brazil, as a key supplier for the pulp and paper industry.

Nouryon will own and operate the sodium chlorate facility – which will increase its industry-leading South America capacity in Brazil by 20% and globally by almost 10% - and engineer, construct and operate the Arauco chlorine dioxide plant. Pulp mill production is scheduled to start in late 2027.

“We are pleased to enhance our long-standing partnership with Arauco as they meet growing demand for renewable pulp-based products,” said Ann Lindgärde, senior vice president of Renewable Fibers at Nouryon. "Our participation in this project further supports Nouryon’s market leadership in South America, and our reputation as a technology leader and reliable supplier with global scale and an extensive supply network committed to supporting customer growth."

Since 2005, Nouryon has successfully implemented a unique and sustainable integrated manufacturing model in Brazil, the global hub of pulp and paper supply. This manufacturing model improves chemical production efficiency and safety by optimizing onsite production, lowering transport costs, and leveraging renewable energy to reduce environmental impacts. This investment marks Nouryon’s seventh integrated site in Brazil.

"Nouryon is proud to collaborate with Arauco on this pivotal project as we expand our Renewable Fibers business and market leading positions in Brazil, and South America at large, a region experiencing market growth that surpasses the global average," said Antonio Carlos Francisco, vice president of Renewable Fibers, South America, at Nouryon. "This investment markedly expands our sodium chlorate capacity to strengthen our service to the South American pulp industry and paves the way for future advancements in renewable fiber production.”

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ALCHEMPro News Desk (RM)