Chile's Arauco sees Montes del Plata pulp mill at capacity in March
SANTIAGO, March 13 (Reuters) - Chile's Celulosa Arauco y Constitucion expects its $2 billion Montes del Plata eucalyptus pulp mill, a joint-venture with Stora Enso in Uruguay, to reach full production this month, Chief Financial Officer Gianfranco Truffello said on Friday.
Montes del Plata, the biggest investment in Uruguay's history, is slated to produce an annual 1.3 million tonnes of eucalyptus pulp once at full capacity.
Production is currently at 90 percent of capacity, but a 10-day planned work stoppage beginning on Monday will be used to iron out any remaining hiccups at Montes del Plata.
"We expect to get out of that with a 100 percent capacity because by doing the annual stoppage we will solve all the problems that we have identified during the ramp up process," Truffello said during a conference call with investors.
Truffello said the mill should produce about 1.2 million tonnes in 2015.
CAPEX AND DELEVERAGING
Arauco, the wood and forestry arm of Chilean industrial conglomerate Empresas Copec, plans about $600 million in capital expenditures in 2015, Truffello added.
Arauco has been pumping cash into expansion projects and acquisitions in Brazil, Canada, Chile, the United States and Uruguay. Continuación...