Valmet delivers equipment to the world's largest pulp mill under construction in Brazil - Finnvera guarantees Finnish exports worth USD 970 million to Arauco's major project
Finnvera has granted a buyer credit guarantee to Valmet’s deliveries to the forest industry company Arauco’s Sucuriú eucalyptus-based pulp mill under construction in Mato Grosso do Sul, Brazil. When completed, Sucuriú will be the world's largest pulp mill in terms of capacity, with a production capacity of 3.5 million tons.
The project has been named after the river Sucuriú flowing near the pulp mill site. Most of the key equipment, construction work, installation, execution and start up will be delivered by Valmet.
“With a complete mill delivery, Valmet can offer the full benefits of our innovative and comprehensive offering consisting of process technology, automation systems, flow control solutions and services. The project has significant importance to Valmet as a global reference as well as securing work for Valmet’s own and our subcontractors’ employees. Even though the mill will be the largest ever delivered, Valmet’s delivery scope will include proven technologies creating a good foundation for this mega mill investment. Complete automation solution includes the latest Valmet DNAe automation system together with mill-wide optimization solution. The solutions are designed to deliver excellent energy efficiency, optimized end-product quality, and high environmental performance,” says Sami Riekkola, Executive Vice President, Pulp, Energy and Circularity, Valmet.”
The Sucuriú project’s construction began in the first half 2025, and the mill is expected to start up at the end of 2027. The investment cost of the project is approximately USD 4.6 billion and the financing package totaling approximately USD 2.2 billion, of which USD 970 million in Export Credit Agency (ECA) financing guaranteed by Finnvera. The financing includes a USD 1.25 billion loan co-led by IDB Invest and IFC including eight participant banks. J.P. Morgan acts as Global Coordinator in the financing.
“We are delighted to execute the largest transaction to date in Latin America under the Finnvera buyer credit insurance policy. This also marks the first Finnvera-backed transaction for a Chilean company aimed at supporting a greenfield project Brazil,” said Laura Galvin, Global Head of Export and Agency Finance at J.P. Morgan Payments.
“This Finnvera financing is key to support ARAUCO’s business plan, which promotes economic growth and sustainability in line with our values and
commitment to the Latin America region.”
Finnvera’s and the multilateral institutions’ involvement aligns compliance with international environmental and social standards, enhances stakeholder engagement, and supports technical advisory services in climate, social, and value chain areas. The project will develop a state-of-the-art pulp mill with an estimated annual capacity of 3.5 million metric tons of Bleached Hardwood Kraft Pulp, supported by approximately 400,000 hectares of sustainably managed eucalyptus and biomass-based energy.
The Sucuriú project integrates technology and sustainable practices such as biodiversity monitoring, clean energy generation, strategic and efficient water management and responsible forest management, while actively engaging local communities through participatory planning and strategic partnerships. Its Strategic Socio-Environmental Plan channels resources into essential areas like health, education, housing, and environmental conservation.
The project will contribute to the development and export growth of the State of Mato Grosso do Sul, particularly in the municipality of Inocência, where the economic transformation is expected to be most pronounced. The project will create approximately 14,000 temporary jobs during construction and 6,000 permanent jobs during operations, while generating 400 MW of renewable energy − 55% of which will be sold to Brazil’s national grid, contributing to the country’s renewable energy goals.
Recognised as one of the world’s largest pulp producers, Arauco operates five pulp mills in Chile, one in Argentina, and one pulp mill in Uruguay co-owned with Stora Enso. Estimated by production capacity, Arauco is also one of the largest panel producers.
Signing date of the Finnvera Guarantee Agreement: August 20, 2025
Name of the Guarantee Holder: J.P. Morgan SE, Germany
Name of the Exporter: Valmet Technologies Oy, Finland; Valmet AB, Sweden; Valmet Celulose Papel e Energia Ltda, Brazil; Valmet Flow Control Ltda, Brazil
Name of the Lenders: J.P. Morgan SE, Germany; Crédit Agricole Corporate and Investment Bank, France; The Hongkong and Shanghai Banking
Corporation Limited, Hong Kong; Banco Santander S.A, Spain.
Name of the Buyer: Arauco Celulose do Brasil S.A., Brazil
Name of the Borrower: Celulosa Arauco y Constitucion S.A., Chile
Project: the construction of a greenfield pulp mill in the state of Mato Grosso do Sul, Brazil
Country of Export transaction/project: Brazil
Total amount of debt financing: USD 2.2 billion
Credit amount: USD 970 million
Credit period: 3 + 15 years
Percentage of cover: 95%
Es-risk classification: A
International standards applied in benchmarking: IFC Performance Standards and relevant WBG EHS Guidelines
Contact point: [email protected]
Environmental and social impact information:
According to Finnvera Environmental and Social risk classification, and OECD Common Approaches, the project is classified as category A. An Environmental and Social Due Diligence (ESDD) was performed, and where necessary, corrective measures intended to close gaps are summarized in an Environmental and Social Action Plan (ESAP). Through implementation of these measures, the project is expected to be in accordance with Performance Standards objectives.
The primary risks and impacts associated with the construction phase are related to influx of temporary workers, increased traffic, emissions, noise and waste generation, as well as local municipalities’ potential lack of capacity to manage the additional pressure on social and physical infrastructure. During the operational phase, primary risks are related to impacts on biodiversity and the need to manage changing social and economic environment.
To mitigate these risks and impacts, the Sucuriu project is integrating sustainable practices such as biodiversity monitoring, clean energy generation, strategic and efficient water management and responsible forest management, while actively engaging local communities through participatory planning and strategic partnerships. Its Strategic Socio-Environmental Plan channels resources into essential areas like health, education, housing, and environmental conservation.
Date of publication: 18 September 2025.
