ARAUCO acquires MASISA assets in Mexico and strengthens its presence in North AmericaCorporate
The operation, which includes three industrial complexes with a combined installed capacity of 417,750msf (739,000 m3), is part of the company’s global plan involving a $245 million investment.
ARAUCO has expanded its global footprint today by strengthening its presence in the North American market with the purchase agreement for MASISA’s industrial assets in Mexico. The agreement involves an investment of $245 million for three industrial complexes located in Chihuahua, Durango and Zitácuaro.
In terms of production, the complexes include three particleboard (PB) lines with an annual installed capacity of 293,386msf (519,000 m3) and an MDF panel line of 124,360msf (220,000 m3) a year. In addition, there are three TFL lines, a resin plant, and a veneer line.
“This action is part of our expansion plan that aims to position ARAUCO as a global company. With this acquisition, we will be extending our presence in the North American panel market, where we see trends of continued market growth for this type of product, focusing on residential and commercial furniture, and industrial markets”, said Matías Domeyko, ARAUCO Chief Executive Officer.
It should be noted that the completion of this transaction is subject to a number of prior conditions that are customary for this type of agreement. One of the most important conditions is the authorization of Mexico's Federal Economic Competition Commission (COFECE).
It is estimated that the transaction will be completed during 2018 – this being the second recent transaction conducted with MASISA. In September 2017, ARAUCO invested $103 million to purchase two MASISA panel mills in Rio Grande do Sul and Paraná Brazil; with an annual installed capacity of 452,230msf (800,000 m3).