Arauco is a major Chilean producer of market pulp and wood products. Owning over 1.2 million hectares of forests in Chile, Argentina and Uruguay, the company’s key advantage is the ideal growing conditions in which the company’s forests are located. Arauco is the third largest producer of market pulp (pulp sold on the open market) and is considering increasing its capacity to over 3.0 million tonnes, which would place its capacity as the world’s largest producer tied with Brazilian competitor Aracruz.

The management is debating whether the company and its shareholders would be better served through a forward integration into the paper business instead of pursuing the option to increase the company’s capacity in market pulp.

Publicado por Harvard Business School Publishing

• English version. Product number: 705474
• Spanish version: Product number: 706S35