Global specialty chemicals leader Nouryon is expanding its presence in South America with a significant investment to support Arauco's new $4.6 billion pulp mill in Brazil.
Nouryon, a global leader in specialty chemicals, has announced a major expansion of its operations in South America, driven by a new long-term agreement with Arauco. The agreement is centered on supplying key chemicals—specifically sodium chlorate and chlorine dioxide—to Arauco's massive new pulp mill project in Mato Grosso do Sul, Brazil. This strategic partnership is poised to significantly increase Nouryon's production capacity in the region and solidify its position as a leading supplier to the booming pulp and paper industry.
The new Arauco pulp mill, which represents an investment of $4.6 billion, is scheduled to begin production in late 2027. To meet the mill's needs, Nouryon will construct fully integrated manufacturing facilities on-site. The company will own and operate the sodium chlorate plant, which will boost its South American capacity by 20% and its global capacity by nearly 10%. Additionally, Nouryon will engineer, construct, and operate the chlorine dioxide plant, showcasing its expertise in integrated manufacturing models.
This investment marks Nouryon's seventh integrated site in Brazil, a country that has become a global hub for pulp and paper supply. The company's unique and sustainable "Integrated Manufacturing Model" has been a cornerstone of its success in the region since 2005. This model involves building on-site facilities adjacent to customer pulp mills, which provides numerous benefits. By using energy from the pulp mills, often generated from renewable biomass, Nouryon can reduce its environmental impact and lower its carbon footprint. The model also improves efficiency and safety by reducing the need for transporting raw materials, which in turn lowers costs for customers.
The construction of these new facilities will not only support Arauco's operations but also contribute to the local economy. The integrated manufacturing model creates local jobs and promotes sustainable practices within the industry. By leveraging renewable energy sources and optimizing logistics, the partnership aligns with both companies' commitments to a more sustainable future. This latest project builds on a history of similar successful ventures in the region, demonstrating Nouryon’s dedication to long-term partnerships and its role as a key enabler of growth in the South American pulp and paper sector.
Nouryon Integrated Manufacturing Model– A pioneering and sustainable solution.
