Paracel pulp mill in Paraguay: A risky project

In October 2020, Paracel SA announced its intention to build this new pulp mill and its Forestry Component. The mill is expected to be operational in 2023.

Paracel is a joint venture established by Copetrol (Paraguay) and Girindus Investments (Sweden), among other investors who have joined the Project afterwards. The Company is developing a greenfield kraft pulp mill and associated eucalyptus plantations in the Departments of Concepción and Amambay, Paraguay. Paracel intends to develop and operate a project with both an Industrial and a Forestry Component. The Industrial Component involves the construction and operation of an elementary, chlorine-free Bleached Eucalyptus Kraft Pulp mill with a capacity of 1,500,000 metric tons per annum. The Forestry Component involves the planting and harvesting of eucalyptus trees on 188,000 ha in 19 former agricultural and cattle ranching properties (or “estancias”) acquired by Paracel (in the departments of Concepción and Amambay). The project has been classified as a Category A project because it may cause significant adverse environmental and social risks and impacts.

Partner Organizations: Environmental Paper Network, Instituto Maira, AXIAL Naturaleza y Cultura, International Accountability Project (IAP), and Grupo SUNU de Acción Intercultural