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Arauco not rebuilding sawmill in Santa Olga after all

25.09.2017 − 

The Chilean timber and pulp group Celulosa Arauco y Constitución of Santiago de Chile has reconsidered its decision to rebuild the sawmill in Santa Olga in the Maule region. This was reported by the Chilean financial newspaper Economía y Negocios. The sawmill, trading under the name „El Cruce”, had suffered considerable damage by forest fires in central Chile at the end of January. The company had previously had annual capacity of 117,000 m³ of timber with 125 employees. This roughly equated to 4% of the total capacity of around 3.0m m³ per year that Arauco hat quoted for South America at that time.

After the fire, the company had initially announced its intention to rebuild the facility. According to information from Economía y Negocios, Arauco is meanwhile working from the assumption of a considerably reduced availability of wood from the company’s own forest plantations in the region as a result of the forest fires. The company believes that an adequate supply of logs for all of the sawmills in the Maule region cannot be assured for a period of 15 years starting from 2019. For this reason, the originally announced decision to rebuild the Santa Olga facility has now been rejected. So far 70 to 80 of the original 125 employees have been relocated to other Arauco facilities.

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