For work or services related to the ordinary production process of a principal, the law provides that an employment relationship is deemed to exist between the principal and the employee of the contractor. Negative developments in the international financial markets in the future could adversely affect the market price of our securities and impair our ability to raise additional capital. With a total world production of unbleached softwood kraft pulp of 1. Our insurance policies for some of our plantations located in Mato Grosso do Sul, Brazil, are carried by Allianz Insurance. To control the spread of phytophthora pinifolia , Bioforest has begun a genetic program to make our trees more tolerant to this disease and has also begun dispersing in our forests a fertilizer that further promotes resistance. Table of Contents In , we experienced approximately 33 days of work stoppages during the construction at Montes del Plata.
Table of Contents Corporate Structure. In , the Brazilian real depreciated against the U. In order to obtain such classification, interested parties have to submit a forestry management plan to the General Forestry Bureau. Energy and Sustainable Development. The mill has an installed annual production capacity of approximately , tonnes of eucalyptus kraft pulp and pine bleached and unbleached kraft pulp. As a result, fluctuations in the exchange rates of such foreign currencies relative to the U.
Our medium-density fiberboard molding sales also experienced a sharp decline in volume mainly due to lower activity in the United States www.afip.goba.r Canadian construction markets.
The Canadian dollar depreciated against the U. As a result, a number of legal and regulatory measures as well as social initiatives have been introduced in numerous countries in an effort to reduce carbon carba and other greenhouse gas emissions and combat global climate change. Economic conditions in Brazil may have a direct impact on our business, financial condition, results of operations curricjlum cash flows.
Thinning, or culling inferior trees from the plantation, occurs when commercially necessary.
In general, our competitors in the pulp market vary depending on the geographical region and variety of pulp involved. The suspension of our operations in Chile resulted in significant asset impairment charges due to earthquake-related damage to property and inventories as well as a significant decrease in our sales volumes due to plant closures, which had an adverse ve on our results of operations and cash flows.
Selling expenses consist primarily of per tonne fees we pay to our selling agents. Certain future actions by the Uruguayan government, including, among others, actions with respect to inflation, interest rates, foreign exchange controls and taxes, could have a material adverse effect on our operations in Uruguay.
Our operations could be adversely affected by labor action and contractual disputes. Enforcement remedies include temporary or permanent closure of facilities and fines.
Share of profit loss of associates and joint ventures accounted for using equity method. We believe that the Montes del Plata project is currently in material compliance with applicable local and national environmental regulations in Uruguay.
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Plantations of other species. To achieve higher quality trees and an increased growth rate, we apply strict selection criteria to the trees from which seedlings are produced. Duringwe experienced 7. Prices for unbleached softwood market pulp also follow cyclical patterns related to worldwide demand, stock levels and supply. The prices for each of our pulp, panels, wood and forestry products depend on the markets in which they are sold.
The Nueva Aldea complex www.afip.go.bar includes a log merchandising facility, with an annual processing capacity of 1. Land Acquisition and Afforestation. Arauco expects that the production capacity of the plant will becubic meters of finished product per vitaw, of which approximatelycubic meters will be coated with melamine paper.
Although we cannot predict the impact of changing global climate conditions, if any, or if legal, regulatory and social responses to concerns about global climate change, any such occurrences may negatively affect our www.afip.gob.wr, financial condition, results of operations and cash flows. Risks Relating to Uruguay.
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The Company filed its defense in September and a decision by the Superintendence is expected in In Argentina, timely and competitively priced delivery of finished products to our customers is an important factor in our ability to compete effectively, and we ship most orders either www.adip.gob.ar truck or railway almost immediately after they are produced.
Environmental regulations in Chile and other countries in which we operate have become increasingly stringent in recent years for example, in connection with the approval and development of new projectsand this trend is likely to continue. The depreciation of each of the Chilean peso, the Argentine peso and the Brazilian real against the U. The following table sets forth our costs for the production of bleached softwood kraft pulp.
Based on information published by Hawkins Wright, our cash costs for softwood pulp production are lower than the average costs of market pulp producers in Canada, the United States and Scandinavia, particularly with www.agip.gob.ar to transportation, which enables our costs to be lower than the average costs of our Northern Hemisphere competitors, on a total delivered cost basis.
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Eucalyptus is more expensive to plant than pine; however, after planting, eucalyptus requires minimal forest management, yields more fiber per hectare and www.afi.pgob.ar a shorter growth cycle and greater wood density than pine, resulting in a greater amount of pulp production per hectare. Inversiones Arauco Internacional Ltda. The average harvest cycle of eucalyptus plantations is approximately 12 years.
Estimates are based on historical durriculum and various other assumptions that are believed to be reasonable, though actual results and timing could differ from the estimates. Under this regulatory framework Brazilian authorities establish forest preservation areas and regulate replanting of forests after harvesting.