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Sonae Arauco idles two facilities in Portugal

27.10.2017 − 

Sonae Arauco temporarily shut down its two Portuguese facilities in Oliveira do Hospital and Mangualde on 16 October. Forest fires that have broken out close to the mills prompted this move. These fires reached both facilities on the morning of 16 October and affected the lumberyards. The information available to date suggests that production machinery is not affected.

An ad-hoc statement published by one of the two joint venture’s partners Sonae Industria indicated that an exact assessment of the damage will not be possible until once unhindered access to the two mills has been restored. This statement noted that Sonae Arauco held insurance policies covering fire damage and the resulting production stoppages. It is not clear when manufacturing will be able to resume at the two facilities. During the stoppage, buyers are to be supplied from Sonae Arauco’s mills in Spain and Germany.

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