ARAUCO Board Approves $235 Million Investment in New MDF Line for Zitácuaro, Mexico, Facility

ARAUCO, a global manufacturer of forest products, announced last Wednesday (9-28-22) that its board of directors has approved an estimated investment of $235 million (USD) for the construction of a new MDF line in Zitácuaro, Mexico. The new MDF line will incorporate leading edge operational, environmental, and safety technology. The project is scheduled to be completed and the new line operational in 2025Q2.

The press release notes that ARAUCO is the primary producer of plywood in Mexico, and this project is expected to add about 300,000 cubic meters of MDF production per year. Half of such production would be melamine coated, which is needed to meet the growing demand of the furniture, construction, and decorating industries in Mexico.

When fully operational the plant will employ approximately 220 workers. In addition, its supply aims to promote a circular economy model, driving small local forestry producers and protecting the ecosystem values of its surroundings.