With 11 industrial units and 12 wood recycling centres, and around 2,600 employees, Sonae Arauco operates in nine countries, with its products available in around 70 markets. Its internationalisation began in the late 1980s when Sonae Indústria acquired a company in Northern Ireland. The following decade saw further acquisitions in Spain, Canada, Germany and France and investments in greenfield projects in Brazil, South Africa, Spain and the United Kingdom.
At the beginning of the century, the company continued its expansion in these countries, diversified its product portfolio and invested in the modernisation of its industrial assets. By 2007, wood panel production had increased to 10 million cubic metres (m3), compared to 2 million m3 in 1997. After 2007, and in a context of global crisis, the company was forced to move forward with a restructuring plan to increase efficiency and flexibility, including the closure of some uncompetitive industrial units and the sale of others in France and Brazil.
The company currently has industrial units in Portugal, Spain, Germany and South Africa. It mainly produces wood-based panels for furniture, interior design and construction. Its offering ranges from decorative Innovus products to more technical Core & Technical products and construction Agepan solutions. "It is a versatile portfolio with a wide range of applications. It is a great alternative to solid wood, with a positive effect on global warming, as it ensures greater energy efficiency in buildings, combined with a remarkable capacity to store CO2," says Joana Martins, director of corporate communication at Sonae Arauco.
One of the company's goals is to establish its Oliveira do Hospital unit as a global benchmark in the sector. “We are investing in the green and digital transition of the industrial unit to enhance its long-term competitiveness. In terms of operational efficiency, we are investing in two new warehouses to strengthen the company's competitiveness and consolidate its delivery capacity,” adds Joana Martins. The project involves the digitisation and automation of the warehouses and production processes to increase efficiency and improve operational impact.
In 2021, Sonae Arauco implemented its first digital factory in Linares, and this project has already been replicated in several industrial units in Portugal, Spain and Germany. ‘These digital versions of the factories provide, in real-time, an extensive and relevant set of data to support decision-making, from entry into the line to dispatch. There are more than 2,000 indicators,’ emphasises Joana Martins.
As one of the world's leading players in the production of wood-based solutions, Sonae Arauco is committed to promoting this natural, renewable and recyclable material. ‘For us, sustainability is a strategic responsibility integrated throughout the value chain,’ says the company's corporate communications director. ‘From the supply of raw materials to the management of end-of-life products, our business model integrates the principles of the
circular bioeconomy. Product development favours renewable materials and seeks to reduce the use of resources. At the same time, production processes are continuously optimised to improve energy efficiency, reduce emissions and minimise waste.’
In 2024, the company achieved a turnover of 830 million euros, with factories in Germany accounting for 48 per cent, Iberia for 41 per cent, and South Africa for 11 per cent. With sales in around 70 countries, the most important destination market was Germany, with 22 per cent of sales, followed by Spain with 19 per cent, Portugal with 15 per cent, Poland with 11 per cent, and South Africa with 10.5 per cent.
‘After two years of declining turnover, following the record year of 2022, with a turnover of more than 1.1 billion euros, the expectation is that in 2025 turnover will grow by around 5 per cent,’ said Joana Martins. This growth should be supported by increased sales of decorative products and wood solutions for construction.
Sonae Arauco's main ongoing projects are related to increasing operational efficiency, digitalisation, business automation, and the use of artificial intelligence. In addition, in the area of decarbonisation, the company has committed to reducing carbon dioxide emissions by 59 per cent by 2029 and has developed a roadmap with three lines of action: reducing the company's emissions, decarbonising its products, and decarbonising its logistics.
In terms of the circular economy, the company has recently invested in creating a new pre-shredding line in Oliveira do Hospital and is completing the world's first fibre panel recycling line in Mangualde, which is set to begin operating in the last quarter of the year. “Recycling is a strategic issue for us, and we have been working to announce this technological advance for a long time,” says Joana Martins. https://www.sonaearauco.com/pt/
