Feb. 9, 2010 (Press Release) - Stora Enso's and Arauco's joint-venture company in Uruguay, Montes del Plata, has decided to initiate a feasibility study on Punta Pereira as the site for a possible future pulp mill. Punta Pereira was also the site chosen for Spanish pulp maker ENCE's planned pulp mill. Stora Enso and Arauco acquired the majority of ENCE's operations in Uruguay in October 2009.

Studies prepared by Montes del Plata show that Punta Pereira, in the Department of Colonia, is a promising location for the possible pulp mill and therefore more detailed economic, technical, environmental and social studies are justified. Punta Pereira also offers flexibility in terms of planning of a long-term investment.

“We have come out with a decision which is based on our preliminary economic, operational and environmental findings. The identification of Punta Pereira will allow us to proceed to the next phase - a detailed feasibility study,” says Stora Enso CEO Jouko Karvinen.

The final decision on construction of the new pulp mill will be taken by the Boards of Directors of Stora Enso, Arauco and Montes del Plata once the feasibility study is completed.

SOURCE: Stora Enso