• GLOBAL HIGHLIGHTS MAP •
The Pulp and Paper Industry
The current economic climate is undoubtedly placing pressure on a number of industry sectors— the pulp and paper industry included. Despite these challenges, growth in this segment is prevalent more than ever in South America while strong and promising investments in North America continue in efforts to meet evolving market trends.
• By KCI Editorial
Canada Canfor Corp’ s Vida AB Secures Strategic Expansion into Central Sweden
Canfor Corporation of Vancouver, British Columbia, Canada, announced in late September that its 77 %-owned subsidiary, Vida AB, has completed an acquisition of Sweden-based AB Karl Hedin Sågverk. The news comes following an announcement late July when Vida AB entered into an agreement to purchase AB Karl Hedin Sågverk from Mattsbo Såg AB for USD $ 164 million, which included working capital of approximately USD $ 39 million. AB Karl Hedin Sågverk operates three sawmills in Central Sweden. The acquisition adds approximately 230 million board feet to Vida’ s annual production capacity with an annual production capacity of roughly 2.1 billion board feet. The company expects to achieve annual savings of approximately $ 15 million within three years by primarily streamlining marketing efforts, improving log procurement, and enhancing operational efficiency.“ This strategic acquisition will enhance Vida’ s operating platform and provide further diversification into Central Sweden. These operations have access to exceptionally high-quality timber and are well positioned to complement Vida’ s high-value product offering,” said Susan Yurkovich, President and Chief Executive Officer of Canfor. The transaction is expected to close over the next several months and subject to customary closing conditions, including regulatory approvals.
Brazil Arauco on Schedule to Build World’ s Largest Pulp Mill in Inocência, Brazil
To support the continued expansion of the South American pulp and paper sector, Celulosa Arauco y Constitución S. A.— a leading Chilean forestry group— has committed to a USD $ 4.6 billion investment toward the development of a bleached eucalyptus market pulp mill in Brazil. This strategic initiative reinforces Arauco’ s position as a key supplier in the global pulp market while advancing sustainable growth and supply chain resilience across the region. The greenfield pulp mill, based in Inocência, Mato Grosso do Sul, is anticipated to be the largest facility of its kind in the world with a forecasted production capacity of 3.5 million tonne of pulp per year. Engineering, procurement, construction, and management( EPCM) for the balance of plant( BOP) is supported and managed by global pulp and paper titan, AFRY. Operations are expected to start in the second half of 2027. AFRY’ s order value was not disclosed. According to the company, the facility will house advanced technologies and sustainable practices aimed at maximizing energy efficiency, reducing operating costs, and minimizing environmental impact.“ Latin America is one of our key pulp and paper competence regions,” said Fábio Bellotti da Fonseca, Head of AFRY Process Industries Latin and North America.“ This project further strengthens our position as an international engineering and design company with focus on life-cycle solutions for industrial plants.” AFRY has been involved in the project since conceptual and environmental licensing studies, as well as when basic and detailed engineering commenced for site and management infrastructure. In support of the new facility, Nouryon— a specialty chemicals provider with headquarters based in Radnor, PA, U. S. and Amsterdam, Netherlands— has entered into a long-term supply agreement with Arauco to provide key sodium chlorate and chlorine dioxide solutions. Under the agreement, Nouryon will build fully integrated sodium chlorate and chlorine dioxide manufacturing facilities in Mato Grosso do Sul, leveraging its manufacturing technology to strengthen its market position across South America— particularly in Brazil. Additionally, Nouryon will own and operate the sodium chlorate facility, which is expected to increase its production capacity in South America by 20 % and contribute nearly a 10 % boost to its global capacity.
30 Valve World Americas | October 2025 | www. valve-world-americas. com