Since summer 2020, Covid-19 related problems have been complicating and delaying the progress of the pulp mill expansion project.
The modernization and expansion of Arauco’s MAPA bleached eucalyptus kraft (BEK) pulp mill in southern Chile was almost 75 percent complete by the end of January. In its annual report, the company said that the main equipment and parts for the completion of the project had arrived and construction work was continuing.
The Chilean government had approved the continuation of large-scale projects such as MAPA in the country’s quarantine zones, but only under strict safety and hygiene standards.
Arauco expects that the new fibre line 3 with a capacity of 1.56 million tpy of bleached eucalyptus kraft pulp, and the modernized line 2 with a capacity of 510,000 tpy to be commissioned in October this year. Originally, production was scheduled to start in March 2021.
In the course of the start-up, MAPA’s 290,000 tpy BEK pulp line 1 is to be closed permanently.
Robust demand + shortfall of supply = Increase in prices