Sonae Arauco Launches Industrial-Scale Fiberboard Recycling Line in Portugal

Sonae Arauco has begun operating the first industrial-scale fiberboard recycling line at its Mangualde, Portugal, factory, following an investment of €8 million (US$9.48 million). The project marks a sector milestone and strengthens the company’s commitment to innovation and the circular economy.

The new line enables end-of-life MDF panels to be processed into raw material for producing new MDF/HDF panels, with up to 20% recycled fiber expected to be incorporated once fully operational.

“This investment is strategic not only for Sonae Arauco, but for the entire wood-based panel industry,” said Sonae Arauco CEO Rui Correia. “The introduction of recycled MDF fibers into new panels in an industrial context demonstrates our commitment to promoting circularity and the cascading use of wood. The initial results are promising, and we are confident that we will achieve the 20% incorporation target to which we are committed.”

In 2024, Sonae Arauco valued 809,000 tons of recycled wood, raising the incorporation rate in its portfolio to 33%. Currently, more than 70% of wood used in its particleboard ranges is recycled, with the company expecting to surpass 75% in some geographies by year-end.

The Mangualde project is part of the TransForm agenda under the Portuguese Recovery and Resilience Plan, which supports capitalization and business innovation.