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Arauco and Cyngn Select South Carolina Facility to Spearhead Electrification and Automation Rollout

Cyngn and Arauco announced the plan to deploy Cyngn’s first DriveMod Forklifts to Arauco’s Bennettsville, South Carolina facility.

Cyngn |
  • Arauco’s first innovative deployment site identified in Bennettsville, SC for Cyngn’s DriveMod Forklifts to initiate global multi-factory rollout
  • Cyngn’s autonomous DriveMod Forklifts aim to enhance Arauco’s operational efficiency and safety

Menlo Park, Calif., August 23, 2023  – Cyngn Inc. (Nasdaq: CYN), a developer of AI-powered autonomous driving solutions for industrial applications, and Arauco, a global sustainable forestry products, pulp, and engineered wood supplier to the furniture and construction industries, today announced the plan to deploy Cyngn’s first DriveMod Forklifts to Arauco’s Bennettsville, South Carolina facility. 

On August 8, Cyngn announced that Arauco had signed an agreement for a paid pre-order of 100 DriveMod Forklifts to help them automate their material handling workflows at wood and pulp manufacturing facilities. The companies plan the initial delivery of DriveMod Forklifts to Arauco starting in mid 2024 in Bennettsville, South Carolina. Cyngn and Arauco plan to work together to expand the DriveMod autonomous fleet across Arauco’s 40+ global sites.

Arauco is a well-known and established wood products supplier with over $7 billion in revenue in 2022. Arauco supplies high-quality wood products to global customers and is committed to sustainability and carbon neutrality. With the intention of electrifying their fleet of forklifts and integrating autonomous capabilities, Arauco expects to support its environmental goals, while maximizing operational productivity, efficiency, and safety.

“Arauco’s decision to deploy its first autonomous vehicles in an American facility underscores the urgency with which these technologies need to be deployed in costly markets like those in North America. In the United States, it can be particularly difficult to hire and retain skilled employees. We are excited at the opportunity to be Arauco's vehicle automation partner and to work in support of their admirable efforts to continue striving for ESG excellence,” said Lior Tal, Chief Executive Officer of Cyngn.

About Cyngn

Cyngn develops and deploys autonomous vehicle technology for industrial organizations like manufacturers and logistics companies. The Company addresses significant challenges facing industrial organizations today, such as labor shortages and costly safety incidents.

Cyngn's DriveMod technology empowers customers to seamlessly bring self-driving technology to their operations without high upfront costs or infrastructure installations. DriveMod is currently available on Motrec MT-160 Tuggers and BYD Forklifts.

The DriveMod Tugger hauls up to 12,000 lbs, travels inside and out, and targets a typical payback period of less than 2 years. The DriveMod Forklift lifts heavy loads that use non-standard pallets and is currently available to select customers. For all terms referenced within, please refer to the Company's annual report on Form 10-K with the SEC filed on March 6, 2025.

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Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statement that is not historical in nature is a forward-looking statement and may be identified by the use of words and phrases such as "expects," "anticipates," "believes," "will," "will likely result," "will continue," "plans to," "potential," "promising," and similar expressions. These statements are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements, including the risk factors described from time to time in the Company's reports to the Securities and Exchange Commission (SEC), including, without limitation the risk factors discussed in the Company's annual report on Form 10-K filed with the SEC on March 6, 2025. Readers are cautioned that it is not possible to predict or identify all the risks, uncertainties and other factors that may affect future results. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. Cyngn undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.

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