The European companies invest in Uruguay

Expanding timber plantation resources in Uruguay attract pulpmill investments from European forest companies, reports the Wood resource quarterly
There is currently only one pulpmill in the country but there are plans for at least three more if financing for the projects can be secured. The Finnish company Metsa-Botnia is the owner of the existing mill, which has an annual production capacity of about one million tons. Two-thirds of the wood supply is coming from the company’s nearby Eucalyptus plantations, while local private landowners supply the remaining pulpwood.
The Spanish paper company Ence is planning a pulpmill southwest of Montevideo, designed to produce about one million tons of Eucalyptus pulp. The company is currently in negotiation with a number of investors regarding the financing of the mill, but this process has slowed as the result of the financial crisis. Portucel Soporcel, a Portuguese paper company, has also announced interest in establishing a pulp and paper mill in Uruguay. The third company that has plans for investing in a pulpmill in Uruguay is the Swedish-Finnish pulp and paper company Storaenso.