One month after receiving authorization to boost production at Uruguay’s first pulp mill in Fray Bentos, Helsinki-based UPM is planning to build a second mill on Uruguay’s Atlantic coast.
The news surfaced over the weekend when Vice President Danilo Astori was responding to reporters questions over the rapid evolution of the timber industry in Uruguay which he described as being “very far from reaching its conclusion.”
The construction of a pulp mill in eastern Uruguay would be a major boost in terms of lower freight costs for timber growers in central and eastern regions like Cerro Largo, Durazno, Florida, Lavalleja, Tacuarembo and Treinta y Tres. These growers currently have to send their timber to the west coast plant at Fray Bentos and the soon-to-open Montes del Plata plant in Colonia.
A major pulp mill on the east coast will be one additional billion dollar jewel in the crown of emerging infrastructure on Uruguay’s eastern seaboard. Between UPM, the future deep water port in Rocha, the La Charqueada Port and the 800 kilometer Hidrovia to Brazil, Uruguay’s east coast will soon be one of the most important logistic and export hubs in the Southern Cone. The opening of each new east coast plant and port will translate into higher land prices over the coming decade. (Full Story in Spanish)
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