Arauco's Licancel Pulp Mill in Chile Shutdown Due to Storm-Related Flooding

The Licancel pulp mill has an installed annual production capacity of approximately 160,000 tonnes of Unbleached Kraft Pulp (UKP)

Sept. 13, 2023 - Arauco announced that a storm in mid-August, which affected the central-southern area of Chile, forced the company to completely shut down its Licancel pulp mill, located in Licanten, in the Maule Region of Chile.

The shutdown took place August 21 due to the overflowing of the Mataquito River.

Arauco said it is "currently reviewing the consequences and impacts of this force majeure event, quantifying the damages caused, and evaluating the future steps to be taken in relation to the plant itself."

Arauco acquired the Licancel plant in September 1999. The mill has an installed annual production capacity of approximately 160,000 tonnes of Unbleached Kraft Pulp (UKP), which corresponds to 3% of Arauco's total annual pulp production capacity and 4.6% of total pulp sales by 2022.

With headquarters in Santiago, Chile, Arauco produces a comprehensive selection of composite panels including MDF, particleboard and HDF, premium plywood, millwork, lumber and wood pulp.

SOURCE: Arauco