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UPM to invest USD 2.7 billion in a world class pulp mill in central Uruguay

UPM to invest USD 2.7 billion in a world class pulp mill in central Uruguay

Specifications:

Name:

UPM to invest USD 2.7 billion in a world class pulp mill in central Uruguay

Location:

Uruguay

Company:

UPM

Estimated Cost:

USD 2.7 billion

Source:

www.upm.com

Introduction:

UPM has made the investment decision to construct a 2.1 million tonne greenfield eucalyptus pulp mill near Paso de los Toros in central Uruguay.

Features:

The highly competitive mill investment of USD 2.7 billion will grow UPM’s current pulp capacity by more than 50%, resulting in a step change in the scale of UPM’s pulp business as well as in UPM’s future earnings. Additionally, UPM will invest USD 350 million in port operations in Montevideo and local facilities in Paso de los Toros. The mill is scheduled to start up in the second half of 2022.

With a combination of competitive wood supply, scale, best available techniques and efficient logistics the mill is expected to reach a highly competitive cash cost level, approximately USD 280 per delivered tonne of pulp. This figure includes the variable and fixed costs of plantation operations, wood sourcing, mill operations and logistics delivered to the main markets.

The mill is designed to fully meet the strict Uruguayan environmental regulations as well as international standards and recommendations for modern mills, including the use of latest and best available proven technology (BAT). Mill’s environmental performance will be verified with comprehensive and transparent monitoring.

The mill’s initial annual production capacity is 2.1 million tonnes, and the environmental permits enable further capacity potential.

When in operation, the mill generates more than 110 MW surplus of renewable electricity providing a stable source of revenue and strengthening Uruguay´s energy balance.