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UPM Plans to Invest $2 Billion in New Pulp Mill in Uruguay

UPM - eucalyptus pulp in Uruguay The new mill, to be located near the city of Paso de los Toros in central Uruguay, would have capacity to produce about 2 million tonnes of eucalyptus pulp per year.

Dec. 11, 2018 - UPM on Dec. 10 announced plans to invest EUR 2 billion in a new mill to be located near the city of Paso de los Toros in central Uruguay. The new mill would have capacity to produce about 2 million tonnes of eucalyptus pulp per year.

A year ago UPM and the government of Uruguay signed an investment agreement which outlines the local prerequisites for a potential pulp mill. The agreement details the roles, commitments and timeline for both parties as well as the relevant items to be agreed prior to the final investment decision. Currently UPM is carrying out technical studies and applying for the necessary permits.

See story at PaperAge.com: UPM Announces Plans to Build Two Million TPY Pulp Mill in Uruguay - Nov. 8, 2017

“A pulp mill investment of this scale requires efficient logistics to enable secure wood supply and pulp deliveries from the inland mill to the port of Montevideo,” explained Petri Hakanen, Senior Vice President of the UPM Uruguay Development Project. “This will require the construction of a modern railway to the port and a modern pulp terminal as well as development of the road network.”

The new railway would provide transport opportunities not only for forestry but also for other businesses like grain and wooden products, while also increasing Uruguay's export competitiveness worldwide.

“We need to ensure that infrastructure development and the permit processes move forward as planned. These are the most significant requirements at this stage,” Hakanen said.

UPM noted that the new pulp mill would have various positive impacts on Uruguay, providing the community with jobs, training and improved infrastructure. The mill's location is in the least developed area of the country, potentially providing a major spur for rapid regional development similar to the earlier example of Fray Bentos.

According to UPM, the new pulp mill is estimated to increase GDP by two per cent. It would boost the local economy and fuel the growth of hundreds of small and medium sized companies throughout the entire value chain. It would also generate a significant number of permanent jobs in industry, plantations, harvesting, port operations and related services.

Through the renewing of the bio and forest industries, UPM is building a sustainable future across six business areas: UPM Biorefining, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Paper ENA and UPM Plywood. To learn more, please visit: www.upm.com

SOURCE: UPM