UPM and the Uruguayan government confirmed investment in a new cellulose plant

The Finnish company UPM and the current Uruguayan government signed a memorandum of understanding on the company's project to grow in the country, giving an important boost to the local economy.

This is the first public announcement made by the Uruguayan government about the venture since it took office in March this year. At press conference, President Luis Lacalle Pou described the US$3 billion venture as a good investment.

"There is satisfaction in a positive agreement on both sides and we believe it is the best path chosen by the government in times of pandemic. This gives certainty, generates tranquility to those who want to invest in Uruguay and provide jobs," said the President.

In a press release, the company said that "in the context of the COVID-19 pandemic and its possible impacts on Uruguayan society, UPM and the government recognize the importance of guaranteeing the implementation of the project and the positive impacts it will have on the Uruguayan economy. Both parties are fully committed to implement the existing investment agreement signed between UPM and the government of Uruguay in November 2017".

Project implementation covers a wide range of aspects, from construction work to infrastructure, energy and regional development. To this end, UPM and the current government signed a memorandum of understanding that adjusts and closes the scope and investments of the parties.

UPM will accelerate its previously planned USD 60 million funding for road infrastructure development in the coastal and central region of the country to support the growing transportation of timber and high performance vehicles while improving the country's road network. In addition, it will invest US$68 million in strengthening the power grid that will create greater capacity and further improve the stability and robustness of the country's power grid.

UPM also plans to invest in a new plant nursery in the central part of the country. This third nursery for the production of Eucalyptus plants will further improve plantation growth and competitive wood supply. The planned investment is estimated at approximately USD 25 million and will create about 120 new permanent jobs.