Arauco’s board of director has approved the construction of a new medium-density fibreboard (MDF) line in the city of Zitácuaro, Mexico.
According to Arauco, this construction project will be an investment of US$235 million and incorporates operational, environmental and safety technology. The project is expected to begin operating during Q2 2025.
Arauco is a producer of wooden boards in Mexico and this project is expected to add about 300,000m3 of MDF production per year, of which half would be melamine coated to meet the growing demand of Mexico’s furniture, construction, and interior decorating industries.
The plant will create jobs for 220 new employees. Additionally, it strives to promote a circular economy model, driving small local forestry producers and protecting the surrounding ecosystem.
Back in May, Arauco also announced an investment to expand their thermally fused lamination (TFL) operations at their particleboard plant in Grayling, Michigan, US.
The new lamination line will be Arauco’s third TFL line at Grayling and will increase the mill’s lamination capacity more than 50% in support of Arauco’s Prism TFL decorative surface product offering.