Arauco

400 Perimeter Center Terrace Suite 750, Atlanta, GA 30346

If you knock on wood, Arauco will knock back. Forestry enterprise Celulosa Arauco y Constitución operates a group of companies known as Arauco. It lays claim to being Latin America’s largest timber plantation owner and Chile’s largest exporter of timber products. It also has operations in Argentina, Brazil, and Uruguay, with land holdings totaling some 1.5 billion hectares. Founded in 1979, Arauco has four business segments: woodpulp, panels, sawntimber, and forestry. It produces wood products including sawn timber, particle board, and plywood from six pulpmills, 14 sawmills, and eight fiberboard and plywood mills. COPEC owns nearly 100% of the shares of Celulosa Arauco y Constitución.

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3.6

Overall Excellence Rating

Industry

Farming Ranching & Forestry

Category

Forestry, Logging & Timber Operations

ESG/Ethical Impact

During 2022 ARAUCO operated in an uncertain local and global context. A war in Europe, tensions between the great powers, rising inflation everywhere and a still latent pan- demic, without being able to fully restore normality. An ins- titutional review was taking place in Chile, which involved discussing significant reforms, such as the tax system and the pension system. We hope that agreements will eventua- lly prevail that will ensure that social improvements will be compatible with measures to encourage savings and invest- ment, which are fundamental for the future of our country. Overall, 2022 was a challenging year for ARAUCO and its businesses. We are facing a difficult period that reinforces the importance of approaching our business with a broad perspective that combines market knowledge, stakeholder engagement, shared value creation and decisive environ- mental management. As these are fundamental issues for society and they form part of our Company’s management and vision. ARAUCO understands the importance of its business in the current global context. The sustainable development of our business contributes to mitigating the effects of climate change and responds to people’s demands to positively affect their quality of life. This conviction drove us to progress with our purpose and commitments during 2022. We commissioned MAPA, the largest investment project in our history, which will increa- se our pulp production capacity and strengthen our competiti- veness and leadership in global markets. We also commissioned the new Hilam Mill in the Ñuble Region in Chile, which has created an opportunity to promote sus- tainable construction using laminated and cross-laminated timber. This is an important solution for the global housing deficit, where wood is emerging as an innovative and natural option, with great prospects for increasing production. Our long-term focus led us to sign a collaboration agreement with the government of Mato Grosso do Sul State, Brazil, to evaluate the construction of a pulp mill. We were also granted approval to build a new MDF line in Zitácuaro, Mexico, to expand our business there. At the 27th United Nations Climate Change Conference (COP27), we announced our plan to measure the natural capital associated with our business, which is consistent with our purpose and commitment to nature and climate change. We will analyze how to become a Nature Net Positive com- pany, which is a company that generates a positive impact on the planet and people, with a strategy based on water conservation, biodiversity conservation and atmospheric CO2 reduction.

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Awards Received

2023

Revenues

$1,590,000,000.00

Website Traffic

Employee Rating

4

Customer Rating

3.5

Company Size

5000-10000

ESG Risk Rating

3

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