Wedoany.com Report-Aug. 19, Nouryon, a global specialty chemicals company, has entered a long-term agreement with Arauco to supply sodium chlorate and chlorine dioxide for Arauco’s new $4.6 billion pulp mill in Mato Grosso do Sul, Brazil. This collaboration strengthens Nouryon’s position as a key supplier to the pulp and paper industry in South America.

Nouryon's integrated manufacturing model concept.

Under the agreement, Nouryon will build and operate a sodium chlorate facility and a chlorine dioxide plant in Mato Grosso do Sul. The sodium chlorate facility will boost Nouryon’s South American capacity by 20% and its global capacity by nearly 10%. Nouryon will also engineer and manage the chlorine dioxide plant for Arauco. The pulp mill is set to begin production in late 2027.

Ann Lindgärde, senior vice president of Renewable Fibers at Nouryon, stated: “We are pleased to enhance our long-standing partnership with Arauco as they meet growing demand for renewable pulp-based products. Our participation in this project further supports Nouryon’s market leadership in South America, and our reputation as a technology leader and reliable supplier with global scale and an extensive supply network committed to supporting customer growth.”

Since 2005, Nouryon has utilized an integrated manufacturing model in Brazil, a major hub for the global pulp and paper industry. This approach enhances production efficiency, improves safety, reduces transport costs, and incorporates renewable energy to minimize environmental impact. The Mato Grosso do Sul facilities will mark Nouryon’s seventh integrated site in Brazil.

Antonio Carlos Francisco, vice president of Renewable Fibers, South America, at Nouryon, said: “Nouryon is proud to collaborate with Arauco on this pivotal project as we expand our Renewable Fibers business and market-leading positions in Brazil, and South America at large, a region experiencing market growth that surpasses the global average. This investment markedly expands our sodium chlorate capacity to strengthen our service to the South American pulp industry and paves the way for future advancements in renewable fiber production.”

This partnership supports Arauco’s efforts to meet rising demand for sustainable pulp-based products while reinforcing Nouryon’s commitment to advancing efficient and environmentally responsible chemical production in Brazil’s growing market.