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Arauco approves a new MDF line in Mexico

 Wednesday, October 12, 2022

Arauco

Arauco board of directors stated that a new MDF line in Mexico has received final approval with an estimated $235 million USD investment. Thus maintaining its place in the North American nation with such a substantial investment, Arauco Mexico is making a significant contribution to the growth of the regional economy using a sustainable forest supply strategy. Located in Zitácuaro, Michoacán, Mexico, this project will provide a brand-new, cutting-edge MDF line for the industrial complex.

Expected to be operational from early 2025

Incorporating the ultramodern operational, environmental, and safety technology, the new MDF production line, which is slated to cost US $235 million, will more than double Arauco’s MDF production capacity in Mexico. With a 150,000 m3 melamine capacity, the new line will be able to produce 300,000 m3 of boards annually. As a result of the product’s primary market being Mexico, the furniture, construction, and decoration industries will see an increase in demand.

The goal of this project was to advance a circular economy model by empowering small local forest producers, protecting the ecosystem assets of their surroundings, and raising public knowledge of the worth of forests in the context of a sustainable, renewable, and long-term vision. Approval of this investment thus marks a successful outcome of the procedure that was started in February of this year when the local authorities approved the environmental impact manifesto study.

Regarding the approval of the investment project, José Manuel Hernández, General Director of Arauco Mexico, stated: “This milestone marks a before and after in the history of Arauco in Mexico, it fills all of us who work in this tremendous company and we have seen its evolution and impact in the industry and in the Mexican market over the years.” According to the stages of the project, it is estimated that the new line will be operational during the first half of 2025. Arauco, deemed to be a pioneer in sustainable forestry, was also the first forest product company to get the Carbon Neutrality accreditation.

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