The recycling of wood contributes to resource efficiency and the circular use of materials, while supporting climate-related objectives.

We currently have a strategy in place to increase the incorporation of recycled wood up to 85% in 2026, in selected industrial units and selected product ranges (PB), subject to material availability, technical requirements and product quality criteria.

For that, numerous investments are being made in both recycling equipment and technology, designed to increase the capacity to process wood waste and improve the incorporation of recovered wood into production, while maintaining product specifications and performance requirements.

Our commitment

In 2025, Sonae Arauco secured a Sustainability-Linked Loan worth €200 million. 

One of the sustainability performance targets (SPTs) defined for this loan is to increase the incorporation of recycled wood by 9.3 percentage points by 2029¹. 

¹ Calculated based on total wood consumption in thousands of dry tonnes (%) in the reference year 2021.

Increasingly - and more innovative - incorporation

Although the use of recycled wood in the production of particleboard (PB) is well established in the industry, Sonae Arauco continues to innovate.

In Mangualde, Sonae Arauco has brought a fibreboard recycling line into operation, enabling end-of-life MDF panels to be processed into raw material for new production at industrial scale. This is an important milestone, not only for our company, but for the evolution of the industry towards a more circular economy.

A new generation of recycled MDF

BioReFiber X represents a new generation of MDF, developed based on the principles of circularity and low environmental impact. 

This innovative solution, scheduled for launch in 2026, integrates recycled MDF fibres and a resin from renewable sources, replacing fossil raw materials.

This will result in a reduction in CO₂ emissions of up to 25%.