Nouryon Expands Sodium Chlorate Capacity in South America by 20%
Nouryon has signed a long-term agreement with Arauco for the supply of sodium chlorate and chlorine dioxide for Arauco's new $4.6 billion pulp mill in Mato Grosso do Sul, Brazil.
Under the terms of the agreement, Nouryon will build fully integrated sodium chlorate and chlorine dioxide production facilities in Mato Grosso do Sul, leveraging its technology and expertise in integrated manufacturing models to strengthen its market leadership in South America, particularly in Brazil, as a key supplier to the pulp and paper industry. Nouryon will own and operate the sodium chlorate plant, which will increase its capacity and leadership position in South America, 20% in Brazil and almost 10% globally, and will design, build and operate Arauco's chlorine dioxide plant. Production at the pulp plant is scheduled to start at the end of 2027.
“We are pleased to enhance our long-standing partnership with Arauco as they meet growing demand for renewable pulp-based products,” said Ann Lindgärde, senior vice president of Renewable Fibers at Nouryon. "Our participation in this project further supports Nouryon’s market leadership in South America, and our reputation as a technology leader and reliable supplier with global scale and an extensive supply network committed to supporting customer growth."
Since 2005, Nouryon has implemented a sustainable integrated manufacturing model in Brazil, a global center for pulp and paper supply. This manufacturing model improves the efficiency and safety of chemical production by optimizing local production, lowering transportation costs and using renewable energy to reduce environmental impact. This investment is Nouryon's seventh integrated unit in Brazil.
"Nouryon is proud to collaborate with Arauco on this pivotal project as we expand our Renewable Fibers business and market leading positions in Brazil, and South America at large, a region experiencing market growth that surpasses the global average," said Antonio Carlos Francisco, vice president of Renewable Fibers, South America, at Nouryon. "This investment markedly expands our sodium chlorate capacity to strengthen our service to the South American pulp industry and paves the way for future advancements in renewable fiber production.”
