Vial y Vives-DSD wins £88m contract for MAPA upgrade project in Chile


Grupo Graña y Montero’s Chilean subsidiary Vial y Vives-DSD has secured a contract from Celulosa Arauco y Constitución for electrochemical civil assembly as part of modernisation and expansion of the Arauco plant (MAPA).

The contract includes the assembly of the water treatment plant, cooling towers, turbogenerators and evaporators at Arauco plant (MAPA). The term of the contract is 23 months and is valued at $111.6m (£88.3m), as reported by the Group in a Relevant Information Communication sent to the Superintendence of Securities Market (SMV).

The work is part of the modernisation and expansion of Arauco plant, a project that involves a total investment of $2.35bn (£1.86bn) and is claimed to be the largest investment in the company’s history.

The modernisation and expansion work that Vial y Vives-DSD will undertake at Arauco was approved the company’s board of directors last July.

Expansion of the plant began in last December and operations at the plant are expected to begin by the end of March 2021.

Last month, Arauco inaugurated its particleboard and lamination facility in Grayling, Michigan, in the US. The company said that the plant represents a $450m (£356m) investment and is expected to support its expansion in the US. The production facility will have 452m ft² capacity per annum.

This 820,000ft² facility is claimed to be the first greenfield facility in the US. This is also the eleventh North American facility and the largest of its kind globally. The operation has been designed to be highly productive and includes North America’s highest-capacity, single-line particleboard press, two thermally infused laminating (TFL) lines and a large stocking warehouse for just-in-time service delivery.

The facility also claims to offer huge advantages in terms of logistics for Arauco’s North American operation. Additionally, the facility benefits from its proximity to abundant wood and raw material resources to supply for large-scale operation and strategic location for cost-effective shipping of finished product to customers across the US and Canada.

Arauco is a wood products producer, supplying pulp, lumber, plywood, composite panels and millwork for architecture, design, construction, packaging, paper, nonwoven and remodelling applications.


Image: Vial y Vives-DSD wins £88m contract for MAPA upgrade project. Photo: Courtesy of William Maw/Pixabay.

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