Producer
ARAUCO (Celulosa Arauco)
Chilean forestry/panel giant; one of the largest MDF and particleboard producers (incl. North America).
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Inputs supplied
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Goods downstream
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Facilities
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Stories
What they make
1 input ARAUCO (Celulosa Arauco) supplies
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Goods downstream
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What else they do
Business segments
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Wood pulp
Wood panels
Sawn timber & wood products
Forestry
Intelligence
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Did you know2024
Arauco shows the other model of the wood-products world: vertical integration from the forest itself. Unlike the Austrian panel converters (Kronospan, EGGER) that buy their wood, Arauco owns millions of hectares of fast-growing tree plantations across Chile and the Americas and turns them into pulp, panels and timber. Its market pulp feeds the world's paper, tissue and packaging — Arauco is among the largest global pulp producers, alongside Brazil's Suzano — while its panels feed furniture. So one Southern Hemisphere forestry group sits under both the global paper-and-tissue supply chain and the furniture-panel supply chain at once, anchored on plantation forests. That makes the price and availability of toilet paper, printing paper and flat-pack furniture partly a function of South American plantation forestry — a connection no shopper would draw between a roll of tissue and a roll of MDF.
Arauco (Empresas Copec) ↗Concentration2024
Because Arauco's raw material is living forest on decade-plus rotations, its supply chain carries climate and wildfire exposure that pure converters don't. Chilean plantation forests have suffered devastating wildfire seasons, and the eucalyptus and radiata-pine monocultures that feed pulp and panels face drought stress and social and land-use controversy. So the pulp in tissue and the board in furniture are downstream of plantation forests whose output depends on rainfall, fire and planting decisions made many years earlier. A bad wildfire season in Chile, or a multi-year drought, is therefore indirectly a global pulp-and-panel supply event — tying everyday paper products and furniture to long-horizon Southern Hemisphere forestry and the climate risks bearing down on it. The further upstream you go in wood products, the more the supply chain becomes a question of trees, weather and decades, not factories.
Arauco (Empresas Copec) ↗