Paracel has begun infrastructure works for the industrial development hub and the country's first pulp mill.
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Paracel has begun construction on the industrial development hub and infrastructure for the pulp mill, with the groundbreaking ceremony held at the plant site in the Paso Horqueta district, marking a national milestone and solidifying the largest private investment in Paraguay's history.
"Our people are strong; we are going to ensure that Paraguayans achieve the standard of living they deserve," stated Blas Zapag, Chairman of Paracel's Board of Directors, during the event.
The project was financed by the Inter-American Development Bank (IDB) with an investment of USD 165 million, as part of a comprehensive commitment to sustainable development, aligned with international environmental, social, and governance standards.
The project includes the construction of key assets such as a port and river terminal, electricity transmission lines, access roads, and logistical infrastructure for the company's pulp mill. These investments will improve regional connectivity, reduce logistics costs, and facilitate the establishment of industries within the industrial development hub.
Flavio Deganutti, the company's CEO, stated: "This infrastructure has a clear purpose: to pave the way for Paraguay's first pulp mill. A plant that will transform the eucalyptus we have already planted into the raw material of the future."
During the event, a strategic agreement was also finalized with Grupo Sudati, a company that will integrate into Paracel's industrial development hub. This investment, estimated at USD 215 million, will create over 2,000 direct and indirect jobs, with construction slated to begin in 2027 and the first phase of operations in 2028, marking a decisive step in consolidating a productive ecosystem around the park.
To ensure the supply for its plant, Sudati is also making a significant investment in expanding the region's forest base — led by Paracel — thereby joining in the development of silviculture. Together, over 30,000 additional hectares will be planted, further strengthening the region's productive base.
Sudati, founded in 1998, is Brazil's largest manufacturer and exporter of plywood, with five industrial plants in the south of the country. The collaboration with Paracel will generate significant synergies, optimizing the comprehensive utilization of wood and its by-products, and strengthening the efficiency of the production model.
The Industrial Development Hub will contribute to the creation of approximately 7,000 direct and indirect jobs, the strengthening of infrastructure, and positioning the north of the country as a new industrial development hub. In this context, Per Olofsson, Chairman of the Board, stated: “Why not Paraguay? This beautiful country has everything necessary for the development of world-class industries.”
Currently, Paracel has over 1,200 direct employees, of whom 95% are Paraguayan, 70% come from the Concepción department, and 47% were in informal employment before joining the company, reflecting a tangible impact on the creation of formal employment and local development.
Additionally, the company owns over 203,000 hectares of land, with 100,000 hectares already planted on company-owned and third-party land, under the highest international standards. Paracel holds FSC® sustainable forest certification, guaranteeing a responsible production model that integrates productive efficiency with environmental care.
The ceremony was attended by the President of the Republic, Santiago Peña, Vice President Pedro Alliana, national authorities, representatives from the private sector, and the Inter-American Development Bank (IDB), reflecting institutional and financial support for a strategic initiative.
During his speech, the president emphasized that “Paracel will be one of the chapters in Paraguay's history,” underscoring the National Government's commitment to industrialization, job creation, and the country's balanced development.
This progress is part of a sustainable development and long-term investment agenda that helps position Paraguay as a competitive player in the region.
With this step, Paracel is not only commencing a large-scale project but also driving the construction of a more diversified, sustainable, and inclusive productive model for the country.
