CMPC Invests $92.6m in Chile Timber for Panels, Structural Timber

CMPC Modernizes Chile Timber Operations

Chilean forestry group CMPC is investing over $90 million to modernize two key timber processing facilities in the Biobío region. The company has allocated $72 million to its Los Ángeles remanufacturing plant and an additional $20.6 million to its Mulchén sawmill.

These upgrades are part of a broader two-year, $1 billion investment program by CMPC aimed at enhancing its overall competitiveness across its pulp, forestry, and consumer product divisions.

The specific goal for the timber operations is to increase capacity for both remanufactured panels and structural construction timber, focusing on higher value-added products for domestic and international markets.

Los Ángeles Plant Focuses on Value-Added Panels

The $72 million investment at the Los Ángeles remanufacturing plant will expand, modernize, and automate various production processes. Approximately $33 million is earmarked for new equipment, including automatic sawing, planing, pressing, moulding, and panel finishing lines, alongside finger-jointing capabilities.

This facility specializes in converting sawn timber into higher value-added items such as remanufactured panels and mouldings. CMPC expects these enhancements to improve production efficiency and productivity, while also reducing both fixed and direct operating costs. The project also targets improvements in operational safety and product quality.

Mulchén Sawmill Boosts Structural Timber Output

At the Mulchén sawmill, the $20.6 million investment will modernize equipment and processes for debarking, sawing, and drying timber. This project is projected to increase the sawmill's annual production capacity from approximately 335,000 cubic meters to 365,000 cubic meters.

A key objective is to raise the proportion of kiln-dried products, with a particular emphasis on higher value-added structural sawn timber, primarily for the construction sector. These improvements aim to strengthen CMPC's industrial platform and support its operations and markets in Chile and abroad, according to Matías Lagos, vice-president of timber and packaging at CMPC.

Implications for Asia's Timber Sourcing

This significant investment by CMPC in Chile's timber processing capabilities shows a continued global trend towards higher value-added wood products, particularly for construction and interior finishes.

For procurement teams and specifiers in Asia, increased capacity for structural sawn timber and remanufactured panels from a major producer like CMPC could offer more diverse sourcing options. Buyers should inquire about specific product certifications and technical specifications for these enhanced timber products to ensure they meet project requirements.

The focus on kiln-dried and higher-value timber also suggests potential for improved consistency and performance in imported wood materials.