Arauco Warns Wildfires in Chile Could Cost the Company $50 Million in Revenue
Chile's Arauco warns of $50 million hit from wildfires
On Wednesday (3-1-23), Arauco, the Chilean pulp and wood panel marker, said it is estimating that it could experience as much as a $50 million hit to its bottom line due to fires raging in the country’s south, according to a report by Reuters. Arauco is the forestry arm of the industrial group Empresas Copec.
The $50 million figure is taking into account available information, the wood that it should be able to recover based on past experiences, and applicable insurance coverage. In a letter to local regulators cited by Reuters, the company said some 47,000 hectares of plantations, mainly pine forests it used to manufacture wood products, could potentially be affected.
Chile is currently battling some of the worst wildfires in years that have burned through over 440,000 hectares, claiming more than 20 lives.
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