Inside information: Valmet to supply a complete pulp mill with full-scope automation and flow control solutions to Arauco in Brazil

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Sep 24, 2024, 22:41 ET

Valmet Oyj's stock exchange release (inside information) on September 25, 2024 at 01:45 a.m. EEST

ESPOO, Finland, Sept. 25, 2024 /PRNewswire/ -- The Board of Directors of Arauco have today approved an investment of a complete pulp mill and selected Valmet as the supplier for the project. Valmet's scope will be the delivery of complete pulp mill including also full-scope automation and flow control solutions to Arauco. The new pulp mill will be the world's largest single-phase pulp mill project with 3.5 million tonne per year pulp production capacity. The new mill is estimated to start-up in the second half of 2027. The pulp mill will be built in Inocência, in the state of Mato Grosso do Sul, Brazil.

The contract is estimated to be finalized by the end of 2024.

The value of the order for Valmet is over EUR 1 billion, and it is expected to be included in Valmet's orders received for the fourth quarter 2024. The anticipated delivery will have an important employment impact on Valmet and its subcontractors especially in Brazil, Finland, Sweden, Denmark, India and China.

"This is an important and decisive stage of our Sucuriú Project, which will feature high expertise and state-of-the-art technology. As the world's largest single-phase pulp production project, our choice to partner with Valmet reflects Arauco's commitment to partnering with those who share our vision for innovation and sustainable practices," says Cristian Infante, Global CEO of Arauco.

"This investment is a significant milestone for the industry, and we are proud to be selected as the partner for Arauco in this major project. Arauco's new pulp mill will be the largest single-phase pulp mill project in the world and will be a showcase for Valmet's sustainable technologies. In addition, the mill will generate a significant amount of excess bioelectricity, contributing positively to the sustainable energy supply of the area," says Thomas Hinnerskov, President and CEO of 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. 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. The mill will feature leading process technologies, including the latest developments in our continuous cooking technology especially tailored for large hardwood mills and the most advanced automation systems and flow control solutions. 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, Business Line President, Pulp and Energy, Valmet.

"The development of the pulp industry in Brazil has been substantial in the past years. To meet the demands of this market and serve the customers even better in the region, Valmet has systematically strengthened its presence and competences locally. Our knowledge about the local conditions, experience in executing projects and commitment to provide long-term services for the new plant ensuring high operational efficiency and sustainability were recognized by Arauco as very important factors in their decision to partner with Valmet," says Celso Tacla, Area President, South America, Valmet.

Details about Valmet's technology delivery to Arauco Sucuriú pulp mill project

Valmet will deliver the full production process from wood handling to ready pulp bales to produce hardwood pulp, as well as automation system and related flow control solutions for the whole mill including features form Valmet's Industrial Internet offering. Valmet's delivery scope includes the engineering, procurement, and construction, including civil construction and commissioning works at the site.

Valmet's process technology delivery will include wood handling, cooking and fiber line, pulp drying and baling, non-condensable gases (NCG) handling solution, evaporation, recovery boiler, biomass boiler, recausticizing, lime kiln, biomass dryer and gasifier.

The automation delivery will include Valmet's latest distributed control system Valmet DNAe, advanced process controls (APC), analyzers and online measurements as well as mill-wide optimization covering all process islands. The Industrial Internet solutions scope includes simulators and connectivity to Valmet Performance Center.

The delivery will additionally include flow control solutions featuring valves and valve automation.

Information about the customer Arauco

Arauco is a global forest industry company, originally from Chile, with a presence on five continents. Founded in 1979, it has operations in more than 75 countries and 55 mills in Brazil, Chile, Argentina, Uruguay, Mexico, the United States, Canada, Germany, Spain, Portugal, and South Africa. It operates globally with over 18,000 employees guided by solid values and common vision of contributing to improving the lives of people and the planet, developing renewable forest products for the challenges of a sustainable world.

Further information, please contact:
Sami Riekkola, Business Line President, Pulp and Energy, Valmet, tel. +358 40 542 7437
Celso Tacla, Area President, South America, Valmet, tel. +55 41 3341 458
Pekka Rouhiainen, VP, Investor Relations, Valmet, tel. +358 10 672 0020
Anu Salonsaari-Posti, SVP, Communications, marketing, sustainability and corporate relations, Valmet, tel. +358 50 453 4262

VALMET

Katri Hokkanen
CFO

Pekka Rouhiainen
VP, Investor Relations

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www.valmet.com

Valmet has a global customer base across various process industries. We are a leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries. With our automation systems and flow control solutions we serve an even wider base of process industries. Our more than 19,000 professionals around the world work close to our customers and are committed to moving our customers' performance forward – every day.

The company has over 220 years of industrial history and a strong track record in continuous improvement and renewal. Valmet's net sales in 2023 were approximately EUR 5.5 billion.

Valmet's shares are listed on the Nasdaq Helsinki and the head office is in Espoo, Finland.