Arauco Chile, could enter European wood panel market.
companies

01 December 2015

Arauco Chile, could enter European wood panel market.

ARAUCO is a forestry company that was established 47 years ago to produce and manage renewable forest resources, and has become one of the largest forestry businesses in the world, not only in terms of forest surface and industrial facilities, but in terms of efficiency, production standards, innovation, environmental responsibility and social commitment as well.

Over the years, the company has maximized the value of its forest plantations by conducting ongoing research and applying global best practices regarding long-term sustainability, while at the same time, protecting the native forests, land and biodiversity present in its forestland, for future generations.
During the last few years, the company has taken significant steps towards the globalization of its operations, and has become one of the five major producers of forestry resources worldwide. Today, ARAUCO provides employment to over 13,000 people; the company maintains 30 production facilities in Chile, Argentina, Brazil, Uruguay, the United States and Canada, and a sales presence in over 80 countries.
ARAUCO uses renewable forest resources to develop products that are present in the lives of millions of people around the world, having a positive impact on their quality of life. The company aims to differentiate each product that is developed by applying innovation and added value. ARAUCO’s products are sold in five continents through representatives, sales agents and sales offices established in twelve countries. This system is backed by efficient management of the logistics and distribution chain which includes transport, shipping, storage, foreign trade, distribution and service, delivering quality products to over 3,500 customers through 220 ports worldwide.
Chilean forestry giant Arauco is contemplating acquiring an important share (50%) of Tafisa Spain, an affiliate company of the 6th largest global wood panel producer, Portuguese Sonae industria. ARAUCO would enter for the first time panel production in Europe. Because this investment would grant rights in the factories linked to Tafisa in Europe and also those located in South Africa. Through the recent acquisition of Flakeboard in North America Arauco with an annual capacity of more than 6 million m3 a year, is today the fourth largest global producer of wood panels after Kronospan, Egger and Swiss Krono. Furthermore, Arauco recently informed the market that it is evaluating the construction a wood panel factory in Grayling, Michigan with an annual nominal capacity of 750.000 m3 that would require a USD 325 million investment.
This would not be the first time that Arauco and Sonae Industria have had business dealings. Back in 2009 Arauco, through its Brazilian subsidiary Placas Do Parana, paid USD 227 million for 100% of Tafisa Brazil, Sonae Industria’s affiliate company in that country.

For more information contact Mr Matias Domeyko, CEO:

 ARAUCO Head Office
150 El Golf Avenue
LAS CONDES / Santiago / Chile
Tel. +56-2 2461 7200 / Fax +56-2 2698 5967 / E-mail: panelsales@arauco.cl

http://www.arauco.cl