Montes del Plata reviews $1.9B pulp mill project in Uruguay to start up in 2013

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Montes del Plata reviews $1.9B pulp mill project in Uruguay to start up in 2013

January 18, 2011 - 03:28

MONTEVIDEO, Jan. 18, 2011 (Press Release) -Montes del Plata announces a USD 1,900 million investment to build a state-of-the-art pulp mill in Conchillas, Uruguay.

Montes del Plata has announced its decision to build a state-of-the-art pulp mill in Conchillas in the department of Colonia. The total investment is estimated at USD 1,900 million. The Stora Enso and Arauco companies are 50-50 shareholders in this joint venture.

The project comprises a state-of-the-art pulp mill, a port and a power-generating unit based on renewable resources.

The company estimates the new mill will be operational in the first months of 2013. Eucalyptus fiber will be mostly sources from Montes del Plata's own forestry plantations in nine departments throughout the country.

The announcement for this investment was made at the Office of the President of Uruguay along with top national officials and representatives from Montes del Plata.

"We are pleased to see this investment becoming reality. It is the result of hard work by the Montes del Plata team, the support of its shareholders (Stora Enso and Arauco) as well as seamless cooperation with national and Department of Colonia officials. Today, a new stage begins where we will put forth our best effort to build a project of excellence," said Erwin Kaufmann, Montes del Plata general manager.

Stora Enso CEO Jouko Karvinen noted that plantation based pulp "is one of the cornerstones of our strategy and this project contributes greatly to meet our company's growth objectives."

In turn, Arauco CEO Matías Domeyko said that as one of the leading forestry companies in Latin America, this announcement "reaffirms our path of steady growth and globalization through the development of new projects."

The new undertaking will be the largest private investment in the history of Uruguay. The construction and operation of the cellulose mill will have a significant economic and social impact on the country. During the construction phase, an average of 3,200 workers will be employed. Peak employment will reach 6,000.

The project will also support the economic and social development of Colonia and the neighboring community of Conchillas, where the company is committed to excellence in environmental performance and to working together with local officials and the community to contribute to sustainable development.