Paracel begins infrastructure works for Paraguay’s first pulp mill and industrial hub
Project includes investments in logistics, energy and forestry development to support one of the country’s largest industrial initiatives
Paracel has started infrastructure works for its industrial development hub and Paraguay’s first pulp mill through a groundbreaking ceremony held in Paso Horqueta district. The initiative represents a major milestone in what is considered the largest private investment project in the country’s history.
The project is being financed by the Banco Interamericano de Desarrollo (IDB), with an investment of USD 165 million aimed at developing strategic infrastructure aligned with international environmental, social and governance standards.
The works include the construction of a river port and terminal, power transmission lines, access roads and logistics infrastructure for the future pulp mill. According to the company, these investments are expected to improve regional connectivity, reduce logistics costs and facilitate the installation of new industries within the industrial hub.
During the event, Blas Zapag, Chairman of the Board at Paracel, highlighted the project’s potential contribution to Paraguay’s economic and social development. Meanwhile, CEO Flavio Deganutti stated that the infrastructure project aims to pave the way for the country’s first pulp mill, which will transform eucalyptus plantations into industrial raw material.
In addition, the company signed a strategic agreement with Grupo Sudati, a Brazilian company that will join the industrial hub through an estimated USD 215 million investment. The project is expected to generate more than 2,000 direct and indirect jobs, with construction scheduled to begin in 2027 and first-phase operations planned for 2028.
As part of the forestry expansion linked to the project, both companies plan to develop more than 30,000 additional hectares of plantations, strengthening the supply base for future industrial operations.
Grupo Sudati, founded in 1998, is one of Brazil’s leading plywood manufacturers and exporters, operating five industrial facilities in the southern region of the country. The partnership with Paracel aims to generate productive synergies and optimize the use of wood and by-products.
According to company estimates, the Industrial Development Hub could contribute to the creation of approximately 7,000 direct and indirect jobs, while strengthening regional infrastructure and positioning northern Paraguay as a new industrial center.
Currently, Paracel has more than 1,200 direct employees, 95% of whom are Paraguayan nationals. The company also reported owning more than 203,000 hectares of land and approximately 100,000 hectares of planted forests under FSC® sustainable forestry certification.
The ceremony was attended by Paraguayan President Santiago Peña, Vice President Pedro Alliana, private sector representatives and officials from the Banco Interamericano de Desarrollo.
