Lisbon, April 4, 2025 (Lusa) - Sonae Arauco announced on Friday that it is investing around €50 million in its Oliveira do Hospital plant in circular economy, decarbonisation and operational efficiency projects and in the reforestation of areas affected by fires. In a statement, the global manufacturer of wood-based panels emphasises that the aim is to "strengthen the competitiveness and sustainability of operations, boost exports and contribute to the community". In the area of decarbonisation, and as part of the global commitment to reduce carbon dioxide emissions (scope 1 and 2) by 59% by 2029, Sonae Arauco will implement a solar renewable energy production project for self-consumption in Oliveira do Hospital. According to the company, this project will ensure "around 30% of the needs of its unit located in the municipality". In terms of operational efficiency, the group is investing in two new warehouses in Oliveira do Hospital to "strengthen the company's competitiveness and consolidate its delivery capacity". This project includes digitalising and automating the warehouses and the production process to enable efficiency gains and improve operations' impact. In the field of the circular economy, Sonae Arauco says it is studying the development of an innovative technology to separate MDF from the recycled chip received at the plant. "This investment will make it possible to leverage a greater incorporation of recycled wood into MDF solutions and underlines the company's commitment to sustainability and innovation in the sector," it explains. The group also recently created a new pre-crushed line that is already enabling an increase in the capacity for incorporating recycled wood, to reach 85% by 2026. All these industrial projects are included in the Recovery and Resilience Plan (RRP) agendas. At the same time, Sonae Arauco emphasised its commitment to reforestation and the recovery of burnt areas, detailing that it is managing an area burnt in 2017 in Vale da Macieira and "negotiating a lease and intervention proposal" for an area of around 50 hectares to control invasives, reduce the risk of fires, manage the existing pine forest, recover water lines and plant hardwoods. Responsible for around 200 direct jobs and 600 indirect jobs in the municipality of Oliveira do Hospital, Sonae Arauco manufactures products mainly for the European market at its local industrial unit - which it said plays a "central role in the group's strategy". PD/ADB // ADB. Lusa