The Finnish pulp and paper company, UPM, has announced plans to develop a greenfield eucalyptus pulp mill near Paso de los Toros, Uruguay.
The 2.1mn tonne facility will grow the firm’s capacity by more than 50%, seeing a significant increase in scale and future earnings.
The firm will invest US$2.7bn into the project, and spend an additional $350mn in port operations in Montevideo and local facilities in Paso de los Toros.
The facility, which is anticipated to be operational by the second half of 2022, is expected to offer best available techniques and efficient logistics.
“During the past decade UPM has developed additional plantation areas in Uruguay and created a market driven pulp business with wide customer base in growing end uses,” commented Jussi Pesonen, President and CEO of UPM.
“At the same time, we have consistently improved our financial performance and achieved a truly industry leading balance sheet.”
“We are now in an excellent position to take this transformative step and capture the opportunities of attractive, growing markets in a sustainable and highly competitive way.”