June 01, 2016
SONAE-ARAUCO BEGINS OPERATIONS IN EUROPE AND SOUTH AFRICA
Atlanta, GA - ARAUCO is very pleased to announce that yesterday the company completed its share agreement for the purchase of 50% of the Spanish company Tafisa, a subsidiary of Portuguese group Sonae Industria.
This is an important chapter in the history of ARAUCO, as it marks the beginning of its operations in Europe and South Africa. With this $150 million USD investment the newly formed company,
Sonae-Arauco, will manufacture and sell OSB, MDF and particleboard panels, as well as sawn timber. This equates to an additional 12 production facilities operating in Spain, Portugal, Germany and South Africa. In total these facilities provide employment to 3,000 people and have a panel production output of 2.37 million ft2 (4.2 million m3). With these assets, the combined annual capacity of the ARAUCO wood panel business will reach 5.09 million ft2 (9 million m3), ranking ARAUCO as the second largest producer globally.
This partnership is beneficial for a number of reasons; it gives ARAUCO the opportunity to expand the panel business into the European market, which is now emerging after a period of subdued economic performance. Furthermore, it provides the ability to exchange best practices with a world-class company, allowing improvements to company operations in the Americas.
The share agreement strengthens ARAUCO’s global presence, and is consistent with the company’s continuing search for opportunities to Grow Well and contributes to the overall long-term sustainability.
President & Chief Operating Officer
Senior Vice-President, International & Business Development