{"id":98382,"date":"2026-04-08T07:14:03","date_gmt":"2026-04-08T07:14:03","guid":{"rendered":"https:\/\/www.timberindustrynews.com\/arauco-warns-of-structural-cost-pressures-in-global-forestry-sector\/"},"modified":"2026-04-08T07:14:03","modified_gmt":"2026-04-08T07:14:03","slug":"arauco-warns-of-structural-cost-pressures-in-global-forestry-sector","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/arauco-warns-of-structural-cost-pressures-in-global-forestry-sector\/","title":{"rendered":"Arauco warns of structural cost pressures in global forestry sector"},"content":{"rendered":"

Arauco<\/span><\/span> is reassessing its operations as geopolitical tensions, rising energy costs and domestic security concerns weigh on the Chilean forestry sector.<\/p>\n

Arauco, one of the world's largest producers of pulp and wood, closed 2025 with profits of US$40.9 million, a significant drop compared to the US$476.3 million obtained in 2024, in a context dominated by lower pulp prices and higher logistics costs.<\/p>\n

In an interview, Charles Kimber, Arauco's Corporate Manager of People and Sustainability, details how the geopolitical conflict, rising oil prices, and insecurity in Chile are weighing on the company's operational decisions and, eventually, on employment.<\/p>\n

<\/a>The Chilean forestry industry faces a highly uncertain scenario marked by geopolitical tensions, a sustained increase in energy costs, and structural changes in global markets.<\/p>\n

The conflict in the Middle East added new pressures to the projections for 2026, affecting trade routes, maritime costs and operational decisions.<\/p>\n

In this interview, Charles Kimber, Corporate Manager of People and Sustainability at Arauco, explains how the company is adjusting its strategy in response to this scenario and what the potential effects are on employment, investment, and competitiveness in the Chilean forestry sector.<\/p>\n

Impact of the conflict and suspension of shipments<\/strong><\/p>\n

How is Arauco viewing this crisis, and what is the perspective of the Chilean forestry industry?<\/em><\/p>\n

\u201cA lesser-known fact is that Middle Eastern markets have been very important for the development of Chile\u2019s timber industry. In the early 1980s, Chile organized itself to sell timber in large quantities to the Middle East at a time when that region was growing and developing. In other words, the modern cities we see today, such as Abu Dhabi, Dubai, Doha, Bahrain, Jeddah, Riyadh, and so on, did not exist at that time, and Chilean timber played a leading role.\u201d<\/p>\n

\u201cToday, unfortunately with the war, we were about to load a ship on March 20 that would leave from Lirqu\u00e9n with wood equivalent to about 8.5 million dollars and we had to cancel that shipment as a result of the war, the uncertainty, the risks and the high costs.\u201d<\/p>\n

What forced them to make that decision?<\/strong><\/p>\n

\u201cIt\u2019s not just the uncertainty and risks of knowing where to enter, because you can\u2019t enter through the Strait of Hormuz, but you could enter through the Mediterranean towards the Red Sea, but we\u2019ve already heard that there\u2019s a possibility that it will be closed. But in addition to those risks and uncertainties, there are the rising costs: fuel costs, insurance costs, diversion costs, and therefore, we had to cancel that shipment and we\u2019re looking at other markets where we can sell that timber.\u201d<\/p>\n

\u201cFurthermore, bunker fuel oil prices worldwide have practically doubled, and in Chile we have seen recent increases in fuel prices, and this has an impact not only on maritime and road transport, but also on rail transport, industries, and forestry operations.\u201d<\/p>\n

Costs, affected products, and operational analysis<\/strong><\/p>\n

How are they dealing with this increase in costs?<\/em><\/p>\n

\u201cThe elimination of the specific fuel tax subsidy affects us because we were not part of the road industry or the forestry machinery operating in the forest, so we were not paying that tax and now that will be eliminated for the next 6 months, therefore it has an impact.\u201d<\/p>\n

\u201cWe are analyzing all the price situations in each of the markets, we are looking at which markets and products are marginal, because there may be certain businesses that are not feasible at these cost levels.\u201d<\/p>\n

\u201cAmong these, one of the products that is greatly affected is MDF and particleboard, because they use resins derived from methanol and urea to manufacture them, and these inputs have suffered very large increases, and that is why we also have to analyze the entire chain, analyze what the situation is in each of our factories and each of our operations.\u201d<\/p>\n

\"If oil was previously between $50 and $60, we believe that now it will be more between $90 and $110.\"<\/p>\n

International operations and employment<\/strong><\/p>\n

Does this situation affect your operations in the United States?<\/em><\/p>\n

\u201cThis situation in the United States affects us greatly, because we have particleboard and MDF plants there that are somewhat older. We are the main producer of these products in the United States, and our costs in this part of the wood business have increased significantly. We are also analyzing the situation and looking for opportunities to raise prices to mitigate the impact of these increased costs.\u201d<\/p>\n

Could all this have repercussions for employment in Chile?<\/em><\/p>\n

\u201cWe need to find efficiencies everywhere. We have to shorten routes, use less transport, negotiate better, and we may have to temporarily halt some production lines in some places. That certainly requires a certain degree of flexibility from a labor employment standpoint, but I can't say more about that at this time.\u201d<\/p>\n

\u201cYes, we are very diligent, because we have the obligation to look very closely at each of our businesses and those businesses that we see are not feasible, we unfortunately have to make the decisions that need to be made, which is to discontinue that business .\u201d<\/p>\n

Investments and the future of forestry in Chile<\/strong><\/p>\n

Will there be new investments in the short term?<\/em><\/p>\n

\u201cWe have a large investment in Yungay, the OSB plant, which we expect to be operational by the beginning of the fourth quarter. It is a very important investment. We are also very excited about everything related to wood construction and value-added production.\u201d<\/p>\n

\u201cBuilding a pulp mill in the short term in Chile is not feasible, because the raw material does not exist, the trees do not exist, and that is why we believe that the first step is to reactivate the plantations.\u201d<\/p>\n

\u201cLast year, Chile planted 1,800 hectares in new land. In Brazil, last year it was 265,000 new hectares. In the state of Mato Grosso do Sul alone, it was 210,000, and Arauco alone planted 65,000 new hectares.\u201d<\/p>\n

\u201cChile needs to be able to regain 2.4 million hectares; we have lost, or there has been deforestation of, at least 400,000 hectares in the last 10 years nationwide.\u201d<\/p>\n

Security, investment and business climate<\/strong><\/p>\n

What explains deforestation and how does security influence it?<\/em><\/p>\n

\u201cThis deforestation is a result of fires, of people who are not replanting after harvesting. It is a result of the violence, of the insecurity that exists in certain areas of the country, where it is not even possible to access the fields that have owners.\u201d<\/p>\n

\u201cIn the other 10 countries where we operate, we haven\u2019t had a single case in the last 20 years. Here in Chile, the industry has had 525 cases, 1,828 machines burned, injuries, and deaths. When I talk about this with my colleagues in the rest of the world, they can\u2019t understand it.\u201d<\/p>\n

Is there greater business optimism?<\/em><\/p>\n

\u201cBusiness owners are always looking for positive signs from the authorities that move in a direction that benefits businesses, and that's there, but we also have to be realistic that these changes aren't easy to implement and require a joint effort, including from society. There needs to be social condemnation of the fact that we can't continue to usurp property, steal, threaten, burn, and start fires. That's not a society that can live in harmony.\u201d<\/p>\n

\u201cBusinesspeople, the private sector, want to invest in Chile, but for that we need certain security conditions to be met.\u201d<\/p>\n

Does the corporate tax cut help, as a signal?<\/em><\/p>\n

\u201cYes, but that\u2019s a medium- and long-term signal. It\u2019s not for a short-term recovery.\u201d<\/p>","protected":false},"excerpt":{"rendered":"

Arauco is reassessing its operations as geopolitical tensions, rising energy costs and domestic security concerns weigh on the Chilean forestry sector. Arauco, one of the world’s largest producers of pulp and wood, closed 2025 with profits of US$40.9 million, a … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":98383,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204],"tags":[],"class_list":["post-98382","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news"],"acf":[],"yoast_head":"\nArauco warns of structural cost pressures in global forestry sector - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/arauco-warns-of-structural-cost-pressures-in-global-forestry-sector\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Arauco warns of structural cost pressures in global forestry sector - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"Arauco is reassessing its operations as geopolitical tensions, rising energy costs and domestic security concerns weigh on the Chilean forestry sector. 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