The most important investment in Uruguayan history

By Pittaluga Abogados

The Finnish pulp and paper company UPM is planning to build its second plant in Uruguay. It will be the country’s third cellulose plant and will be located at the basin of Rio Negro’s river.

The Uruguayan government and UPM will define in 60 days four task groups to work on issues related to infrastructure, environment, financial conditions and labor aspects. The plant exact placement will be determined by the logistic elements agreed by these task groups.

When announcing this new investment, Uruguayan president Tabaré Vázquez said that the cornerstone laying ceremony will take place in November 2018 and the plant will start working in 2020, producing more tan 2 million tons of cellulose pulp.
UPM will invest 4,000 million dollars in the plant building and logistics, and Uruguay will add 1000 million dollars, said president Vázquez.

It is estimate that the new plant will bring around 8,000 new direct and indirect job positions and the contribution of many Uruguayan companies as construction and maintenance providers. This undertaking will impact the country’s economy in 2% to 2.5 % of Uruguayan GDP.

UPM estimates a request of 220 kilometers of bituminous routes and railroads to transport the production into Montevideo’s seaport and enhancement works in the capital’s terminal. The company expressed the will to take part in the required harbor improvements that have a cost estimated in 85 million dollars.

The second aforementioned task group will work in labor issues. The Labor and Social Security Ministry, with the workers involvement, will head the group.

The country concern for environmental issues will be the main focus of the third group headed by the Environment Ministry. A fourth group will be analyzing the effects in energy production in a talk lead by the Industry, Energy and Mining Ministry.

Sources: Uruguay Country Brand and Uruguayan Presidency