Arauco Sucuriu (IFC-50766)

Countries
  • Brazil
Geographic location where the impacts of the investment may be experienced.
Specific Location
City of Inocencia, State of Mato Grosso do Sul
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Borrower
Celulosa Arauco y Constitucion S.A.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
  • Energy
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
Not Disclosed
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Campaign Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS May 14, 2025

Disclosed by Bank May 24, 2025

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the bank website, the IFC is considering a loan to support Celulosa Arauco y Constitución (Arauco) for the construction and operation of the Sucuriú Project, an industrial pulp plant in Inocência, Mato Grosso do Sul, Brazil. The facility will have an annual production capacity of 3.5 million tons of short-fiber pulp, supported by 400,000 hectares of eucalyptus plantations, with operations expected to begin in late 2027. The project includes a 91 km transmission line connecting the plant to the Ilha Solteira substation and a 47 km railway link to the Rumo Logística network, facilitating pulp distribution. The plant will incorporate high-efficiency processing units, including a recovery boiler, lime kilns, an evaporation plant, and a crystallization plant. Thegasification system will feature two 92 MW units, while a biomass boiler with a 200 t/h capacity will contribute to energy self-sufficiency. The facility is expected to generate 400 MW of clean energy, with 220 MW available for sale through Brazil’s National Interconnected System (SIN).

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

With the support of specialized external consultants, the project has developed an Environmental & Social Impact Assessment (ESIA) titled “Estudo De Impacto Ambiental (EIA/RIMA) - Fábrica de Celulose Branqueada em Inocência – MS” dated “October 2023” to address E&S risks, impacts and mitigations for the project. The ESIA was submitted for approval to the Mato Grosso do Sul Environmental Institute (IMASUL). The ESIA should not be taken as an indication that IFC has completed its review of the potential investment. Upon completion of the E&S Due Diligence process, an Environmental and Social Review Summary (ESRS) will be prepared and published on this website.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Investment amount not available at the time of disclosure.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by Bloomberg, Celulosa Arauco y Constitucion S.A. manufactures wood products. The Company produces wooden cellulose, coated and naked boards, laminated beams, and moldings. Celulosa Arauco y Constitucion serves customers worldwide.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Celulosa Arauco y Constitucion S.A. Client -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

No contacts available at the time of disclosure.

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries.

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly,  you can submit a complaint at the link above to IFC’s Access to Information Policy Advisor, who reports directly to IFC’s Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org.  You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

 

How it works

How it works