Empresas Copec S A : ARAUCO indefinitely suspends operations at Licantén pulp mill
September 13, 2023 at 05:59 pm EDT
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Despite the efforts and adjustments in recent times, the subsidiary suspended operations due to several reasons related to climate variability, with consecutive flooding of the Mataquito River this winter, extreme periods of drought that caused repeated halts in the mill's operations in previous summers, and high-impact forest fires which, together with the lack of a public policy to promote reforestation over the last decade, have led to a low availability of wood for industrial use.
The firm has an exit plan in place that seeks to generate the least possible impact on the 163 direct workers and contractors who provide services. Likewise, the municipal and regional authorities have been informed of this decision and together with them the subsidiary will continue helping with the recovery of Licantén after the floods suffered in the last few months.
The Licantén mill has an installed annual production capacity of approximately 160,000 tons of raw pine pulp, which corresponds to 3% of Arauco's total capacity and 1.7% of the company's total revenues for the year 2022.
EC - Empresas Copec SA published this content on 12 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 September 2023 21:58:06 UTC.
Empresas COPEC SA is a Chile-based holding company engaged, through its subsidiaries, in the energy and natural resources sectors. The Companyâs operations are structured into four business sectors: the Forestry Business. Fuels Business, Fishing Business and Other Investments. The Company operates in the forestry business through its affiliate Arauco, which produces wood pulp, panel and sawn lumber. The Companyâs fuel business is focused on the liquefied fuels, lubricants, and liquefied petroleum gas and natural gas markets. The Company operates in the fishing business through its affiliate Pesquera Iquique - Guanaye, which produces fishmeal, fish oil, canned and frozen seafood for human consumption. The Company has productive platforms in Argentina, Brazil, Canada, Colombia, the United States and Uruguay. On April 11, 2014, the Company with Inversiones Ultraterra Ltd sold their total stake in Empresa Electrica Guacolda to AES Gener.