Nouryon, a global specialty chemicals player, entered into a long-term agreement with Arauco. The deal covers the supply of essential sodium chlorate and chlorine dioxide solutions for Arauco’s new $4.6 billion pulp mill in Mato Grosso do Sul, Brazil. This partnership reinforces Nouryon’s role as a leading supplier to the pulp and paper industry in South America. It is especially strong in Brazil.
New Facilities to Boost Capacity
As part of the deal, Nouryon will build and operate a fully integrated sodium chlorate facility at Mato Grosso do Sul. The plant will increase the company’s industry-leading South American capacity in Brazil by 20%. It will also expand its global capacity by nearly 10%.
Additionally, Nouryon will engineer, construct, and operate Arauco’s chlorine dioxide plant. The new pulp mill will begin production in late 2027.
Strengthening a Strategic Partnership
“We are pleased to enhance our long-standing partnership with Arauco as they meet growing demand for renewable pulp-based products,” said Ann Lindgärde, Senior Vice President of Renewable Fibers at Nouryon. “Our participation in this project further supports our market leadership in South America and reinforces our reputation as a technology leader and reliable supplier with global scale,” Lindgärde added.
Proven Integrated Manufacturing Model
As per the press release, since 2005, Nouryon has implemented a sustainable integrated manufacturing model in Brazil. The country is considered the global hub for pulp and paper supply. This approach improves efficiency, enhances safety, lowers transportation costs, and leverages renewable energy to reduce environmental impact. The new investment will mark Nouryon’s seventh integrated site in Brazil.
Supporting Market Growth in Renewable Fibers
“Nouryon is proud to collaborate with Arauco on this pivotal project,” said Antonio Carlos Francisco, Vice President of Renewable Fibers, South America, at Nouryon. “This expansion significantly strengthens our ability to serve the South American pulp industry and positions us to advance renewable fiber production in a region experiencing market growth well above the global average,” Francisco added.
