Paracel held the groundbreaking ceremony this week for the industrial development hub and infrastructure for Paraguay's first pulp mill in Paso Horqueta, Concepción department. The event was attended by President Santiago Peña, Vice President Pedro Alliana, and representatives of the Inter-American Development Bank (IDB).
“Our people are hardworking; we will ensure that the standard of living of Paraguayans is what they deserve,” said Blas Zapag, chairman of Paracel's board, during the ceremony. The project received US$ 165 million in financing from the IDB and is aligned with international environmental, social, and governance sustainability standards.
The work includes construction of a port and river terminal, electrical transmission lines, access roads, and logistics infrastructure. Flavio Deganutti, the company's CEO, highlighted: “This infrastructure has a clear purpose: to prepare 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.”
At the same event, a strategic agreement was signed with Grupo Sudati, Brazil's largest manufacturer and exporter of plywood. The company will invest US$ 215 million in a unit that will integrate into the industrial hub, with construction expected to begin in 2027 and the first phase operational in 2028. The initiative is expected to generate over 2,000 direct and indirect jobs.
To supply the plant, Sudati will also participate in expanding the forest base led by Paracel, with an additional 30,000 hectares planted. The hub as a whole is expected to create approximately 7,000 jobs and position the north of the country as a new axis of industrial development.
“Why not Paraguay? This beautiful country has everything needed for the development of world-class industries,” said Per Olofsson, chairman of Paracel's board. The company currently has over 1,200 direct employees — 95% Paraguayan, 70% from Concepción, and 47% who were in informal employment before being hired.
Paracel owns more than 203,000 hectares of land, with 100,000 hectares already planted, and holds FSC® sustainable forest certification. President Santiago Peña emphasized that “Paracel will be one of the chapters in Paraguay's history,” reinforcing the government's commitment to industrialization and job creation.