Arauco’s consolidated sales for the year reached USD 5,238.3 million an increase of 10% compared to the USD 4,761.4 million in 2016.
Revenues reached USD 1,331.3 million during the fourth quarter of 2017, a 4.5% decrease compared to the USD 1,393.4 million obtained in the third quarter of 2017. And an increase of 9.1% compared to the USD 1,220.6 obtained in the same quarter of 2016.
Net income reached USD 83.2 million in the fourth quarter, a decrease of 44.0% or USD 65.2 million compared to the USD 148.4 million obtained in the third quarter of 2017. And an increase of 9.8% or USD 7.4 million compared to the same quarter of 2016 (USD 75.8 million). Consolidated net income for 2017 reached USD 270.4 million, an increase of 24.3% compared to 2016(USD 217.6 million).
In December 2017, Inversiones Arauco Internacional Limitada and AraucoMex, S.A. de C.V. agreed with Masisa S.A. the total buyout of the social rights of its subsidiaries in Mexico. The transaction price is for approximately USD 245 million.
Main assets consist of three industrial complexes located in Chihuahua, Durango and Zitácuaro in Mexico, with a total annual installed capacity of 220,000 m3 of MDF; 519,000 m3 of PB; 426,000 m3 of melamine; 66,000 tons of resins; 60,600 tons of formaldehyde and 22.8 million m2 of impregnation lines. The transaction is subject to a series of conditions, customary in this type of operations, with the most relevant one being the approval by the Mexican antitrust authority and is estimated to be materialized during 2018.
In the US, Arauco’s Grayling Project continues its course on schedule. As of December 31st, 2017, the progress was a 40% completion and today is 70%. The particleboard mill located in Grayling, Michigan, USA, will cost approximately USD 400 million and will have a capacity of 800,000 m3 per year. Rollout of the first panel is estimated to occur during the latter part of 2018.