We renewed all of the collective-bargaining agreements that expired during in Chile, with the exception of two agreements whose renewals were postponed until May. Environmental concerns led to the temporary suspension of our operations at the Valdivia Mill in , which adversely affected, and in the future may continue to adversely affect, our business, financial condition, results of operations and cash flows. In and , This was largely due to an improvement in production rates at our pulp mills as compared to Pruning results in a high-quality clear wood saw log of 5. This was mainly the result of an increase in the sales volumes of our panels, pulp and timber products business segments by
During , average prices for our wood products division increased 5. The exchange rate between the Brazilian real and the U. Domestic and Export Sales. This mill located in Oregon has an installed annual production capacity of approximately , cubic meters of MDF. In , we were able to achieve lower unit costs of pulp.
No representation is made that the Chilean peso or U.
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Table of Contents During Januarythe biomass cogeneration power plant located in the Montes del Plata pulp mill facility in Uruguay was successfully registered as a CDM project activity. Inexport sales, defined as sales out of the country where our goods were produced, accounted for Table of Contents For certain activities including curriculhm of an industrial plant listed in Article 2 of Decree No. This initiative, which requires a U.
As a result of our forest management policies and the increasing maturity of our plantations, our plantations are yielding increasing volumes of forestry products, particularly clear wood.
In Latin America the demand for our sawn timber and panels products remained positive, which resulted in increases in revenue of It also has drying facilities with installed annual production capacity of approximatelycubic meters. Duringsawn timber improved, with increased demand that permitted the sales mix and prices to improve compared to Table of Contents Our operations could be adversely affected by labor disputes.
Historically, world pulp prices have been subject to significant fluctuations over relatively short periods of time. Since there have been a number of monetary and currency exchange control measures implemented in Argentina, which have included the obligation to repatriate foreign currency earned abroad and tight restrictions on transferring funds chrriculum, with certain exceptions for authorized transactions.
Audit Committee Financial Expert. We are substantially wholly owned by Empresas Copec S.
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Exports, which include sales to countries www.xfip.gob.ar than the countries in which the goods are produced, accounted for aip These www.arip.gob.ar and our waste disposal are subject to limits or controls prescribed by law or by our operating permits, and we may be required to install or upgrade our pollution control equipment in order to meet these legal requirements. For example, the Brazilian real appreciated against the U.
The management and exploitation of forests in Uruguay is regulated primarily by Law No. We may undertake mergers, acquisitions and investments to expand or complement our operations that could result in operating carg or otherwise adversely affect our business, financial conditions and results of operations.
However as a percentage of our revenues, in and cost of sales represented Table of Contents Future economic, social and political developments in Brazil may adversely affect the business, financial condition, results of operations and cash flows of our Brazilian subsidiaries. The forest plantations affected by the fires had insurance coverage, with their corresponding deductibles and limits. Chile has experienced high rates of inflation in the past, the highest of which occurred more than 20 years ago.
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In addition, such changes may impact the market price of our securities. The Canadian dollar depreciated against the U.
We acquired the Licancel Mill in September We operate our sawmills in coordination with our forestry and sales operations, since our sawn timber is generally produced in accordance with customer specifications.
Table of Contents Prices for our panel, forestry and wood products may decline in the future. The deductible for Arauco North America, including physical damage and business interruption is U.
Throughoutprices continued to xfip as the expected output of the mill located in Indonesia was revised to 1.
The mill gradually increased its production over a four-month period starting in March and reached full capacity in June Environmental laws and regulations relating to the management and exploitation of forests and the protection of Brazilian plants and wildlife govern our Brazilian forestry operations.
In accordance with such final report, we received a total recovery of U. We believe carba our Argentine operations are in material compliance with the regulatory framework.
In addition, national rural labor law, Law No. Land for other uses 3.
Commercial thinning occurs when trees are eight to 14 years old and results in an average reduction of the number of trees per hectare from the original stocking of 1, and 1, depending on the productivity of the land, to in the first thinning years and to approximately in the second thinning years.