Nouryon Expands Sodium Chlorate Capacity in South America by 20% through Partnership with Arauco

Nouryon has signed a long-term agreement with Arauco, one of the world’s leading forestry and pulp companies, to supply sodium chlorate and chlorine dioxide to Arauco’s new $4.6 billion pulp mill in Mato Grosso do Sul, Brazil.

Under the agreement, Nouryon will build and operate an integrated production facility for sodium chlorate and chlorine dioxide in the region. By leveraging its expertise in integrated production models, Nouryon will strengthen its leadership position in South America—particularly in Brazil—while also expanding its global presence in the pulp and paper industry. The new facility will boost the company’s sodium chlorate capacity in Brazil by about 20% and increase its global output by nearly 10%. In addition, Nouryon will design, construct, and operate Arauco’s chlorine dioxide plant. The pulp mill is scheduled to start operations by the end of 2027.

Ann Lindgärde, Senior Vice President of Renewable Fibers at Nouryon, commented: “We are pleased to deepen our partnership with Arauco to address the growing global demand for renewable pulp products. This collaboration not only consolidates our leadership in South America but also reinforces our reputation as a reliable technology partner and global supplier. With our scale and supply network, we are committed to supporting customer growth worldwide.”

Since 2005, Nouryon has implemented a sustainable integrated production model in Brazil, enhancing efficiency and safety by optimizing local production, reducing transportation costs, and utilizing renewable energy to lower environmental impact. This latest investment will mark the company’s seventh integrated production unit in Brazil.

Antonio Carlos Francisco, Vice President of Renewable Fibers in South America at Nouryon, added: “We are proud to join forces with Arauco on this strategic project. It enables us to expand our footprint in South America, where demand is growing faster than the global average. The added capacity strengthens our ability to serve the regional pulp industry and paves the way for future growth in renewable fibers.”